Daqo New Energy (NYSE:DQ) and Maxim Integrated Products (NASDAQ:MXIM) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Volatility and Risk
Daqo New Energy has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Maxim Integrated Products has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
Valuation and Earnings
This table compares Daqo New Energy and Maxim Integrated Products' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Daqo New Energy | $349.99 million | 19.21 | $29.52 million | $0.40 | 241.93 |
Maxim Integrated Products | $2.19 billion | 11.42 | $654.69 million | $2.26 | 41.42 |
Maxim Integrated Products has higher revenue and earnings than Daqo New Energy. Maxim Integrated Products is trading at a lower price-to-earnings ratio than Daqo New Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Daqo New Energy and Maxim Integrated Products' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Daqo New Energy | 13.98% | 12.41% | 6.49% |
Maxim Integrated Products | 30.03% | 39.85% | 18.51% |
Analyst Recommendations
This is a breakdown of current recommendations for Daqo New Energy and Maxim Integrated Products, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Daqo New Energy | 0 | 1 | 3 | 0 | 2.75 |
Maxim Integrated Products | 1 | 14 | 2 | 0 | 2.06 |
Daqo New Energy currently has a consensus target price of $38.60, indicating a potential downside of 60.11%. Maxim Integrated Products has a consensus target price of $67.5294, indicating a potential downside of 27.87%. Given Maxim Integrated Products' higher possible upside, analysts plainly believe Maxim Integrated Products is more favorable than Daqo New Energy.
Insider & Institutional Ownership
14.6% of Daqo New Energy shares are owned by institutional investors. Comparatively, 86.0% of Maxim Integrated Products shares are owned by institutional investors. 0.6% of Maxim Integrated Products shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Maxim Integrated Products beats Daqo New Energy on 10 of the 14 factors compared between the two stocks.