Contrasting DAQO New Energy (NYSE:DQ) & International Flavors & Fragrances (NYSE:IFF)

DAQO New Energy (NYSE:DQ) and International Flavors & Fragrances (NYSE:IFF) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Valuation & Earnings

This table compares DAQO New Energy and International Flavors & Fragrances”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DAQO New Energy	$1.03 billion	1.67	-$345.21 million	($5.84)	-4.38
International Flavors & Fragrances	$11.30 billion	1.53	$243.00 million	($1.55)	-43.52

International Flavors & Fragrances has higher revenue and earnings than DAQO New Energy. International Flavors & Fragrances 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for DAQO New Energy and International Flavors & Fragrances, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DAQO New Energy	0	1	4	2	3.14
International Flavors & Fragrances	1	2	12	0	2.73

DAQO New Energy currently has a consensus price target of $26.10, indicating a potential upside of 1.98%. International Flavors & Fragrances has a consensus price target of $92.36, indicating a potential upside of 36.92%. Given International Flavors & Fragrances’ higher possible upside, analysts clearly believe International Flavors & Fragrances is more favorable than DAQO New Energy.

Profitability

This table compares DAQO New Energy and International Flavors & Fragrances’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DAQO New Energy	-65.64%	-6.54%	-5.97%
International Flavors & Fragrances	-3.48%	7.95%	3.97%

Institutional and Insider Ownership

47.2% of DAQO New Energy shares are held by institutional investors. Comparatively, 96.0% of International Flavors & Fragrances shares are held by institutional investors. 24.3% of DAQO New Energy shares are held by company insiders. Comparatively, 0.2% of International Flavors & Fragrances shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

DAQO New Energy has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, International Flavors & Fragrances has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Summary

International Flavors & Fragrances beats DAQO New Energy on 10 of the 15 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 International Flavors & Fragrances

International Flavors & Fragrances, Inc. engages in the manufacture and supply of flavors and fragrances used in the food, beverage, personal care, and household products industries. It operates through the following segments: Nourish, Health & Biosciences, Scent and Pharma Solutions. The Nourish segment consists of legacy Taste segment combined with N&B’s Food & Beverage division and the food protection business of N&B’s Health & Biosciences division. The Health & Biosciences business consists of a biotechnology-driven portfolio of enzymes, food cultures, probiotics and specialty ingredients for food, home and personal care, and health and wellness applications. The Scent business creates fragrance compounds, fragrance ingredients and cosmetic ingredients that are integral elements in the world’s finest perfumes and best-known household and personal care products. The Pharma Solutions business produces a vast portfolio including cellulosics and seaweed-based pharma excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling. The company was founded in 1833 and is headquartered in New York, NY.