DAQO New Energy (NYSE:DQ – Get Free Report) and Nova (NASDAQ:NVMI – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.
Earnings and Valuation
This table compares DAQO New Energy and Nova”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DAQO New Energy | $665.41 million | 1.21 | -$170.51 million | ($2.84) | -4.19 |
| Nova | $880.58 million | 12.56 | $259.22 million | $8.08 | 43.08 |
Insider & Institutional Ownership
47.2% of DAQO New Energy shares are owned by institutional investors. Comparatively, 83.0% of Nova shares are owned by institutional investors. 24.3% of DAQO New Energy shares are owned by company insiders. Comparatively, 1.0% of Nova shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares DAQO New Energy and Nova’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DAQO New Energy | -34.50% | -3.26% | -3.01% |
| Nova | 28.84% | 21.41% | 11.95% |
Volatility & Risk
DAQO New Energy has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Nova has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for DAQO New Energy and Nova, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DAQO New Energy | 4 | 1 | 1 | 0 | 1.50 |
| Nova | 0 | 2 | 8 | 1 | 2.91 |
DAQO New Energy currently has a consensus target price of $15.83, suggesting a potential upside of 32.91%. Nova has a consensus target price of $514.44, suggesting a potential upside of 47.80%. Given Nova’s stronger consensus rating and higher probable upside, analysts plainly believe Nova is more favorable than DAQO New Energy.
Summary
Nova beats DAQO New Energy on 14 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 Nova
Nova Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea, and internationally. Its product portfolio includes a set of metrology platforms for dimensional, films, and materials and chemical metrology measurements for process control for various semiconductor manufacturing process steps, including lithography, etch, chemical mechanical planarization, deposition, electrochemical plating, and advanced packaging. The company serves various sectors of the integrated circuit manufacturing industry, including logic, foundries, and memory manufacturers, as well as process equipment manufacturers. Nova Ltd. was formerly known as Nova Measuring Instruments Ltd. and changed its name to Nova Ltd. in July 2021. Nova Ltd. was incorporated in 1993 and is headquartered in Rehovot, Israel.
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