Comparing China Sunergy (OTCMKTS:CSUNY) and Daqo New Energy (NYSE:DQ)

Daqo New Energy (NYSE:DQ) and China Sunergy (OTCMKTS:CSUNY) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Daqo New Energy and China Sunergy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daqo New Energy	1	2	1	0	2.00
China Sunergy	0	0	0	0	N/A

Daqo New Energy presently has a consensus target price of $32.93, suggesting a potential upside of 74.11%. Given Daqo New Energy’s higher probable upside, analysts clearly believe Daqo New Energy is more favorable than China Sunergy.

Institutional and Insider Ownership

47.2% of Daqo New Energy shares are owned by institutional investors. 24.3% of Daqo New Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Daqo New Energy and China Sunergy’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	$2.31 billion	0.54	$421.16 million	$2.13	8.88
China Sunergy	N/A	N/A	N/A	N/A	N/A

Daqo New Energy has higher revenue and earnings than China Sunergy.

Risk and Volatility

Daqo New Energy has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, China Sunergy has a beta of 3.78, meaning that its share price is 278% more volatile than the S&P 500.

Profitability

This table compares Daqo New Energy and China Sunergy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daqo New Energy	7.84%	2.46%	2.15%
China Sunergy	N/A	N/A	N/A

Summary

Daqo New Energy beats China Sunergy on 8 of the 9 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 China Sunergy

China Sunergy Co., Ltd., together with its subsidiaries, designs, develops, manufactures, and markets solar cells and modules in the People's Republic of China and internationally. The company offers monocrystalline and multicrystalline silicon solar cells; and standard P-type solar cells, HP solar cells, and emitter cells, as well as solar modules for use in a range of residential, commercial, industrial, and other solar power generation systems. It also invests in, develops, and operates solar power projects. The company sells its products to system integrators, solar power project developers, and solar power product distributors under the CSUN brand name, as well as on an original equipment manufacturing basis. China Sunergy Co., Ltd. was founded in 2004 and is headquartered in Nanjing, the People's Republic of China.