Reviewing DAQO New Energy Corp. (DQ) & Its Rivals
DAQO New Energy Corp. (NYSE: DQ) is one of 12 public companies in the “Photovoltaic Solar Systems & Equipment” industry, but how does it contrast to its competitors? We will compare DAQO New Energy Corp. to related businesses based on the strength of its profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Institutional and Insider Ownership
28.4% of DAQO New Energy Corp. shares are owned by institutional investors. Comparatively, 40.3% of shares of all “Photovoltaic Solar Systems & Equipment” companies are owned by institutional investors. 16.0% of shares of all “Photovoltaic Solar Systems & Equipment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares DAQO New Energy Corp. and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DAQO New Energy Corp.||19.35%||18.90%||8.18%|
|DAQO New Energy Corp. Competitors||-13.39%||-113.38%||-3.84%|
Valuation and Earnings
This table compares DAQO New Energy Corp. and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|DAQO New Energy Corp.||$229.10 million||$43.49 million||8.51|
|DAQO New Energy Corp. Competitors||$1.32 billion||-$58.64 million||-0.12|
DAQO New Energy Corp.’s competitors have higher revenue, but lower earnings than DAQO New Energy Corp.. DAQO New Energy Corp. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of current recommendations and price targets for DAQO New Energy Corp. and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DAQO New Energy Corp.||0||0||2||0||3.00|
|DAQO New Energy Corp. Competitors||174||585||856||55||2.47|
DAQO New Energy Corp. currently has a consensus price target of $42.50, indicating a potential upside of 5.80%. As a group, “Photovoltaic Solar Systems & Equipment” companies have a potential downside of 16.92%. Given DAQO New Energy Corp.’s stronger consensus rating and higher probable upside, equities analysts clearly believe DAQO New Energy Corp. is more favorable than its competitors.
Risk & Volatility
DAQO New Energy Corp. has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, DAQO New Energy Corp.’s competitors have a beta of 1.64, indicating that their average stock price is 64% more volatile than the S&P 500.
DAQO New Energy Corp. beats its competitors on 9 of the 13 factors compared.
About DAQO New Energy Corp.
Daqo New Energy Corp. is a polysilicon manufacturer. The Company utilizes the chemical vapor deposition process, or the modified Siemens process, to produce polysilicon. The Company’s segments include Polysilicon and Wafer. The Company manufactures and sells polysilicon to photovoltaic product manufacturers, whereby the polysilicon is processed into ingots, wafers, cells and modules for solar power solutions. The Company offers ready-to-use polysilicon, packaged to meet crucible stacking, pulling and solidification needs. The Company offers wafers through its downstream photovoltaic product manufacturing business. The Company also provides wafer original equipment manufacturer (OEM) service to external customers through tolling agreements by processing polysilicon to produce ingot and wafer. Its annual capacity for polysilicon is approximately 12,150 metric tons (MT) in Xinjiang. The Company’s wafer manufacturing annual capacity is approximately 90 million pieces.
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