Ingevity (NYSE:NGVT – Get Free Report) and DAQO New Energy (NYSE:DQ – Get Free Report) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Insider & Institutional Ownership
91.6% of Ingevity shares are owned by institutional investors. Comparatively, 47.2% of DAQO New Energy shares are owned by institutional investors. 1.1% of Ingevity shares are owned by insiders. Comparatively, 24.3% of DAQO New Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for Ingevity and DAQO New Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ingevity | 0 | 1 | 3 | 0 | 2.75 |
| DAQO New Energy | 0 | 4 | 2 | 2 | 2.75 |
Risk and Volatility
Ingevity has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, DAQO New Energy has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.
Profitability
This table compares Ingevity and DAQO New Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ingevity | -26.20% | 63.76% | 6.92% |
| DAQO New Energy | -58.63% | -7.16% | -6.48% |
Valuation & Earnings
This table compares Ingevity 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 | |
| Ingevity | $1.41 billion | 1.09 | -$430.30 million | ($9.74) | -4.33 |
| DAQO New Energy | $1.03 billion | 0.93 | -$345.21 million | ($6.51) | -2.20 |
DAQO New Energy has lower revenue, but higher earnings than Ingevity. Ingevity 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.
Summary
Ingevity beats DAQO New Energy on 8 of the 14 factors compared between the two stocks.
About Ingevity
Ingevity Corporation manufactures and sells activated carbon products, derivative specialty chemicals, and engineered polymers in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. It operates through three segments: Performance Materials, Performance Chemicals, and Advanced Polymer Technologies. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products for use in gasoline vapor emission control systems in cars, motorcycles, trucks, and boats. This segment also produces other activated carbon products for food, water, beverage, and chemical purification applications. The Performance Chemicals segment consists of road technologies and industrial specialties. This segment's products are used in pavement construction, pavement preservation, pavement reconstruction and recycling, road markings, agrochemical dispersants, paper chemicals, and other industrial uses. The Advanced Polymer Technologies segment produces caprolactone and caprolactone-based specialty polymers for use in coatings, resins, elastomers, adhesives, bioplastics, and medical devices. It serves automotive parts and components manufacturers through sales representatives and distributors. The company was formerly known as WestRock Company, Specialty Chemicals Business and changed its name to Ingevity Corporation in September 2015. Ingevity Corporation was founded in 1964 and is headquartered in North Charleston, South Carolina.
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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