Contrasting EMCORE (NASDAQ:EMKR) and Daqo New Energy (NYSE:DQ)

EMCORE (NASDAQ:EMKRGet Rating) and Daqo New Energy (NYSE:DQGet Rating) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Volatility & Risk

EMCORE has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Daqo New Energy has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Profitability

This table compares EMCORE and Daqo New Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EMCORE 11.69% 10.86% 8.08%
Daqo New Energy 45.77% 45.97% 37.25%

Institutional & Insider Ownership

73.6% of EMCORE shares are owned by institutional investors. Comparatively, 71.0% of Daqo New Energy shares are owned by institutional investors. 1.9% of EMCORE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares EMCORE and Daqo New Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EMCORE $158.44 million 0.81 $25.64 million $0.48 7.08
Daqo New Energy $1.68 billion 2.86 $748.92 million $20.92 3.08

Daqo New Energy has higher revenue and earnings than EMCORE. Daqo New Energy is trading at a lower price-to-earnings ratio than EMCORE, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for EMCORE and Daqo New Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMCORE 0 1 0 0 2.00
Daqo New Energy 0 3 2 0 2.40

EMCORE presently has a consensus price target of $4.50, indicating a potential upside of 32.35%. Daqo New Energy has a consensus price target of $80.82, indicating a potential upside of 25.24%. Given EMCORE’s higher possible upside, analysts plainly believe EMCORE is more favorable than Daqo New Energy.

Summary

Daqo New Energy beats EMCORE on 9 of the 14 factors compared between the two stocks.

About EMCORE

(Get Rating)

EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in the United States, Canada, Asia, Europe, and internationally. It operates in two segments, Aerospace and Defense, and Broadband. The company offers navigation system and inertial sensing products, such as fiber optic gyros products that includes gyroscopes, inertial measurement units (IMU), and inertial navigation systems (INS), as well as QMEMS gyroscopes, accelerometers, IMUs, and INS products primarily for the aerospace and defense markets; and defense optoelectronics comprising optiva platform fiber optic transport systems and erbium doped fiber amplifiers, as well as ruggedized microwave flange-mount transmitters, receivers, and optical delay line products. It also provides cable TV (CATV) lasers and transmitters that are used in forward-and return-path broadband, subassembly components, analog fiber-optic transmitters, quadrature amplitude modulation transmitters, and CATV fiber amplifiers. In addition, the company offers high-power gain chips products, photodiode products, and GPON fiber-to-the-premises (FTTP) and data center chip products for the telecommunication markets; and lasers, receivers, and photodetector components for wireless, distributed sensing, and light detecting and ranging applications. It serves CATV, optical sensing, telecom, data center, and navigation and defense optoelectronics markets. The company sells its products through direct sales force, application engineers, third party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.

About Daqo New Energy

(Get Rating)

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufactures 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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