Sonoco vs Perimeter Solutions

This page compares Sonoco and Perimeter Solutions, examining their business models, financial performance, and market context. It offers a neutral overview of how the companies approach packaging and industrial solutions, their strategies, and the environments in which they operate. The content is designed to be accessible and informative, not a recommendation. Educational content, not financial advice.

This page compares Sonoco and Perimeter Solutions, examining their business models, financial performance, and market context. It offers a neutral overview of how the companies approach packaging and ...

Comparison Snapshot

Key Financial Metrics

SON

Metric

PRM

$4.70B

Market Cap

$4.18B

11.75%

Potential Profit

15.54%

Buy

Analyst Rating

Strong Buy

Investment Analysis

Sonoco

SON

Pros

Sonoco has a diversified product portfolio across consumer and industrial packaging, reducing reliance on specific substrates or markets.
The company reported robust Q3 2025 operational performance with a 57% year-over-year net sales increase and a record adjusted EBITDA margin of 18.1%.
Sonoco has a strong dividend history, having raised dividends for 43 consecutive years, appealing to income-focused investors.

Considerations

Sonoco missed its Q3 2025 earnings per share and revenue forecasts, indicating some near-term operational challenges.
Free cash flow declined sharply in the first nine months of 2025 to $29 million from $171 million in the prior year, signaling potential liquidity pressures.
Revenue decreased by 2.5% in 2024 compared to the prior year, and earnings fell significantly by 65.5%, pointing to recent financial performance weaknesses.

Perimeter Solutions

PRM

Pros

Perimeter Solutions operates in niche markets including fire safety and specialty chemicals, providing diversified revenue streams.
The company produces unique products such as phosphorus pentasulfide-based lubricant additives and firefighting foams, giving it technological differentiation.
Perimeter Solutions trades at attractive valuation multiples compared to sector averages, with a forward P/E of 13.4x and upside potential from analyst targets.

Considerations

Perimeter Solutions' business segments are exposed to regulatory risk, especially fire safety product regulations which can impact sales cycles.
Its exposure to cyclicality and commodity price fluctuations in specialty chemicals markets may introduce earnings volatility.
The company's market capitalization and scale are modest compared to larger sector peers, potentially limiting competitive leverage and growth resources.

About The Companies

Sonoco (SON)

Sonoco Products Co. (SON) is a global packaging company that makes and supplies a wide range of consumer and industrial packaging solutions, including rigid and flexible packaging, paperboard, protective packaging and containers. With a market capitalisation of about $4.06 billion, Sonoco operates manufacturing facilities worldwide and serves sectors such as food and beverage, healthcare, household goods and industrial customers. Investors should note the company’s exposure to commodity input costs (paper, resins, energy), foreign exchange and cyclical end-market demand; these factors can influence margins and earnings. Sonoco has historically returned cash to shareholders through dividends, though payouts depend on board decisions and business performance. Key considerations for investors include product mix, cost management, environmental regulations and shifts toward sustainable packaging. This is general educational information only and not personal financial advice — values can rise and fall, and past performance does not guarantee future results. Consider your own objectives and risk tolerance before making investment decisions.

Perimeter Solutions (PRM)

Perimeter Solutions SA (ticker: PRM) is a speciality chemicals company that supplies formulated and performance chemicals to industrial and commercial customers worldwide. Its product range supports sectors such as construction, infrastructure maintenance and certain energy-related services, with revenue derived from chemicals, additives and related application services. Investors should note a market capitalisation of about $3.08 billion and the company’s sensitivity to end-market activity, raw-material costs and currency moves. Potential growth drivers include infrastructure spending, geographic expansion and product innovation, while risks include volatile input prices, regulatory shifts and competitive pressure. Financial performance can be cyclical and dependent on management execution, pricing power and cost control. When assessing PRM, look at margins, free cash flow and balance-sheet resilience. This summary is for general educational purposes only and is not personalised financial advice; suitability depends on your individual goals, risk tolerance and time horizon.

Which Baskets Do They Appear In?

Green Packaging Investment Theme: 18 Stocks (2025)

International Paper's $1.5 billion sale of its cellulose fibers unit signals a strategic pivot to its core sustainable packaging business. This move highlights a broader industry trend of portfolio optimization, creating potential growth opportunities for companies focused on eco-friendly packaging solutions and related industries.

Published: August 22, 2025

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Which Baskets Do They Appear In?

Green Packaging Investment Theme: 18 Stocks (2025)

International Paper's $1.5 billion sale of its cellulose fibers unit signals a strategic pivot to its core sustainable packaging business. This move highlights a broader industry trend of portfolio optimization, creating potential growth opportunities for companies focused on eco-friendly packaging solutions and related industries.

Published: August 22, 2025

Explore Basket

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Comparison Snapshot