Head to Head Comparison: DAQO New Energy (NYSE:DQ) vs. Novozymes A/S (OTCMKTS:NVZMY)

Novozymes A/S (OTCMKTS:NVZMY) and DAQO New Energy (NYSE:DQ) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Novozymes A/S and DAQO New Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novozymes A/S	0	1	0	0	2.00
DAQO New Energy	2	2	1	1	2.17

DAQO New Energy has a consensus target price of $25.43, indicating a potential upside of 9.85%. Given DAQO New Energy’s stronger consensus rating and higher probable upside, analysts clearly believe DAQO New Energy is more favorable than Novozymes A/S.

Valuation and Earnings

This table compares Novozymes A/S and DAQO New Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novozymes A/S	$4.70 billion	4.76	$660.13 million	$1.40	38.54
DAQO New Energy	$665.41 million	2.33	-$170.51 million	($2.54)	-9.11

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

Risk and Volatility

Novozymes A/S has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, DAQO New Energy has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Novozymes A/S shares are held by institutional investors. Comparatively, 47.2% of DAQO New Energy 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Novozymes A/S and DAQO New Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novozymes A/S	13.96%	6.38%	4.36%
DAQO New Energy	-25.62%	-2.92%	-2.69%

Summary

Novozymes A/S beats DAQO New Energy on 9 of the 15 factors compared between the two stocks.

About Novozymes A/S

Novozymes A/S produces and sells industrial enzymes, microorganisms, and probiotics in Denmark, rest of Europe, North America, Asia Pacific, the Middle East, Africa, Latin America, and internationally. The company offers protein solutions for the food and beverage industry. It also offers industrial hygiene, drain openers, hard surface, medical cleaning, septic tanks, ware washing, and professional laundry services. In addition, the company provides dishwashing, softener, microbial and medical cleaning services. Further, it provides corn, cotton, forages, peanuts, pulses, soybeans, wheat, small grains, bioyield, and biocontrol solutions; warm water species, recirculating aquaculture system; animal health and nutrition solutions; fiber modification, bleach boosting, deposit control, and starch modification solutions. Additionally, the company provides carbon capture, leather and textiles solutions; enzyme solutions, including corn and wheat separation, liquefaction, saccharification, filtration, isomerization, maltose, and specialties solutions; warm water species and recirculating aquaculture system solutions; human health solutions, comprising brain, oral, protective and immune, and gastrointestinal health solutions; ethanol, biodiesel, renewable diesel, education, wastewater, and sewage sludge, and renewable diesel solutions; agriculture and industry, biogas food waste, food waste, biocatalysis, cell culture, diagnostics, enzyme, and biogas solutions. Furthermore, it provides lipases, proteases, oxidoreductases, and carbohydrases. Novozymes A/S was founded in 1925 and is based in Bagsvaerd, Denmark.

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.