Reviewing Daqo New Energy (NYSE:DQ) & ASMPT (OTCMKTS:ASMVF)

Daqo New Energy (NYSE:DQ) and ASMPT (OTCMKTS:ASMVF) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Daqo New Energy	31.45%	16.65%	14.38%
ASMPT	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Daqo New Energy and ASMPT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daqo New Energy	0	2	2	0	2.50
ASMPT	0	0	1	0	3.00

Daqo New Energy currently has a consensus target price of $51.23, indicating a potential upside of 58.52%. Given Daqo New Energy’s higher possible upside, analysts plainly believe Daqo New Energy is more favorable than ASMPT.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daqo New Energy	$3.43 billion	0.73	$1.82 billion	$13.75	2.35
ASMPT	N/A	N/A	N/A	$2.23	4.54

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

Institutional & Insider Ownership

57.4% of Daqo New Energy shares are held by institutional investors. Comparatively, 25.1% of ASMPT shares are held by institutional investors. 24.3% of Daqo New Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Daqo New Energy beats ASMPT on 9 of the 11 factors compared between the two stocks.

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.

About ASMPT

ASMPT Limited, an investment holding company, engages in the design, manufacture, and marketing of machine and tools used in the semiconductor and electronics assembly industries worldwide. It operates in two segments, Semiconductor Solutions and Surface Mount Technology Solutions. The Semiconductor Solutions segment offers wire and die bonders, encapsulation solutions, test handlers, clip bonders, CIS equipment, TCB and flip chip bonders, mold under fill, panel molding, and laser grooving and dicing. The Surface Mount Technology Solutions segment provides assembly line solutions; DEK printing systems; SIPLACE placement systems; and ASM smart factory tools and services. It also offers agency, logistics, marketing, and property investment services; develops, produces, markets, and sells execution systems software solutions; and trades in semiconductor and surface mount technology equipment. ASMPT Limited was formerly known as ASM Pacific Technology Limited and changed its name to ASMPT Limited in June 2022. The company was incorporated in 1975 and is headquartered in Singapore.