DAQO New Energy (NYSE:DQ – Get Free Report) and Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.
Insider and Institutional Ownership
47.2% of DAQO New Energy shares are held by institutional investors. Comparatively, 56.5% of Allegro MicroSystems shares are held by institutional investors. 24.3% of DAQO New Energy shares are held by company insiders. Comparatively, 0.5% of Allegro MicroSystems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for DAQO New Energy and Allegro MicroSystems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DAQO New Energy | 4 | 1 | 1 | 0 | 1.50 |
| Allegro MicroSystems | 1 | 1 | 9 | 1 | 2.83 |
Risk and Volatility
DAQO New Energy has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500.
Earnings and Valuation
This table compares DAQO New Energy and Allegro MicroSystems”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DAQO New Energy | $555.69 million | 1.40 | -$170.51 million | ($2.84) | -4.04 |
| Allegro MicroSystems | $945.93 million | 7.24 | -$14.90 million | $0.06 | 612.67 |
Allegro MicroSystems has higher revenue and earnings than DAQO New Energy. DAQO New Energy is trading at a lower price-to-earnings ratio than Allegro MicroSystems, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares DAQO New Energy and Allegro MicroSystems’ 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% |
| Allegro MicroSystems | 1.50% | 8.30% | 5.65% |
Summary
Allegro MicroSystems 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 Allegro MicroSystems
Allegro MicroSystems, Inc., together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers. The company sells its products to original equipment manufacturers and distributors primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment. It operates in the United States, rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets. The company was founded in 1990 and is headquartered in Manchester, New Hampshire. Allegro MicroSystems, Inc. is a subsidiary of Sanken Electric Co., Ltd.
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