DAQO New Energy (NYSE:DQ – Get Free Report) and Ecovyst (NYSE:ECVT – Get Free Report) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.
Earnings & Valuation
This table compares DAQO New Energy and Ecovyst”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DAQO New Energy | $568.22 million | 1.69 | -$170.51 million | ($2.78) | -5.10 |
| Ecovyst | $723.50 million | 1.94 | -$71.13 million | ($0.55) | -23.27 |
Insider & Institutional Ownership
47.2% of DAQO New Energy shares are owned by institutional investors. Comparatively, 86.7% of Ecovyst shares are owned by institutional investors. 24.3% of DAQO New Energy shares are owned by insiders. Comparatively, 1.8% of Ecovyst shares are owned by 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 Recommendations
This is a breakdown of current ratings and recommmendations for DAQO New Energy and Ecovyst, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DAQO New Energy | 3 | 2 | 1 | 1 | 2.00 |
| Ecovyst | 1 | 1 | 4 | 0 | 2.50 |
DAQO New Energy currently has a consensus price target of $23.59, suggesting a potential upside of 66.56%. Ecovyst has a consensus price target of $14.20, suggesting a potential upside of 10.97%. Given DAQO New Energy’s higher possible upside, equities research analysts clearly believe DAQO New Energy is more favorable than Ecovyst.
Profitability
This table compares DAQO New Energy and Ecovyst’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DAQO New Energy | -32.92% | -3.19% | -2.94% |
| Ecovyst | -7.71% | 11.58% | 4.76% |
Volatility & Risk
DAQO New Energy has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Ecovyst has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.
Summary
Ecovyst beats DAQO New Energy on 11 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 Ecovyst
Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.
Receive News & Ratings for DAQO New Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DAQO New Energy and related companies with MarketBeat.com's FREE daily email newsletter.
