Sumco (OTCMKTS:SUOPY – Get Free Report) and Daqo New Energy (NYSE:DQ – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
Risk and Volatility
Sumco has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Daqo New Energy has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500.
Valuation & Earnings
This table compares Sumco and Daqo New Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sumco | $3.04 billion | 0.85 | $453.58 million | $0.80 | 18.50 |
| Daqo New Energy | $2.31 billion | 0.51 | $429.55 million | ($1.85) | -9.68 |
Insider and Institutional Ownership
0.0% of Sumco shares are owned by institutional investors. Comparatively, 47.2% of Daqo New Energy shares are owned by institutional investors. 24.3% of Daqo New Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Sumco and Daqo New Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sumco | 5.25% | 3.25% | 1.83% |
| Daqo New Energy | -9.16% | -1.90% | -1.68% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Sumco and Daqo New Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sumco | 0 | 0 | 0 | 0 | 0.00 |
| Daqo New Energy | 0 | 1 | 4 | 3 | 3.25 |
Daqo New Energy has a consensus price target of $22.26, suggesting a potential upside of 24.37%. Given Daqo New Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Daqo New Energy is more favorable than Sumco.
Summary
Sumco beats Daqo New Energy on 9 of the 15 factors compared between the two stocks.
About Sumco
Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.
About Daqo New Energy
Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufacturers in the People's Republic of China. Its products are used in ingots, wafers, cells, and modules for solar power solutions. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp. in August 2009. Daqo New Energy Corp. was founded in 2006 and is based in Shanghai, the People's Republic of China.
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