DAQO New Energy (NYSE:DQ – Get Free Report) and Green Plains (NASDAQ:GPRE – Get Free Report) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Volatility & Risk
DAQO New Energy has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Green Plains has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.
Insider & Institutional Ownership
47.2% of DAQO New Energy shares are owned by institutional investors. 24.3% of DAQO New Energy shares are owned by company insiders. Comparatively, 1.0% of Green Plains shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DAQO New Energy | 1 | 2 | 3 | 1 | 2.57 |
| Green Plains | 2 | 5 | 3 | 1 | 2.27 |
DAQO New Energy currently has a consensus target price of $27.04, indicating a potential downside of 13.29%. Green Plains has a consensus target price of $10.00, indicating a potential downside of 0.20%. Given Green Plains’ higher possible upside, analysts clearly believe Green Plains is more favorable than DAQO New Energy.
Profitability
This table compares DAQO New Energy and Green Plains’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DAQO New Energy | -53.74% | -5.89% | -5.42% |
| Green Plains | -6.34% | -13.65% | -6.72% |
Earnings and Valuation
This table compares DAQO New Energy and Green Plains”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DAQO New Energy | $639.06 million | 3.27 | -$345.21 million | ($5.14) | -6.07 |
| Green Plains | $2.40 billion | 0.27 | -$82.50 million | ($2.40) | -4.18 |
Green Plains has higher revenue and earnings than DAQO New Energy. DAQO New Energy is trading at a lower price-to-earnings ratio than Green Plains, indicating that it is currently the more affordable of the two stocks.
Summary
Green Plains beats DAQO New Energy on 7 of the 13 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 Green Plains
Green Plains Inc. produces low-carbon fuels in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces ethanol, distillers grains, and ultra-high protein and renewable corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling and storage, commodity marketing business; and trading of ethanol, distiller grains, renewable corn oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services. It operates 24 ethanol storage facilities; two fuel terminal facilities; and a fleet of approximately 2,180 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was incorporated in 2004 and is headquartered in Omaha, Nebraska.
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