DAQO New Energy (NYSE:DQ) & Disco (OTCMKTS:DSCSY) Head to Head Contrast

DAQO New Energy (NYSE:DQ) and Disco (OTCMKTS:DSCSY) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

47.2% of DAQO New Energy shares are held by institutional investors. Comparatively, 0.0% of Disco shares are held by institutional investors. 24.3% of DAQO New Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares DAQO New Energy and Disco’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%
Disco	31.65%	26.03%	20.56%

Analyst Ratings

This is a breakdown of current recommendations for DAQO New Energy and Disco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DAQO New Energy	3	2	2	1	2.12
Disco	0	1	1	0	2.50

DAQO New Energy presently has a consensus target price of $22.35, indicating a potential upside of 63.97%. Given DAQO New Energy’s higher probable upside, analysts plainly believe DAQO New Energy is more favorable than Disco.

Volatility & Risk

DAQO New Energy has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Disco has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.

Earnings and Valuation

This table compares DAQO New Energy and Disco”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	1.39	-$170.51 million	($2.78)	-4.90
Disco	$2.90 billion	14.03	$894.45 million	$0.87	43.14

Disco has higher revenue and earnings than DAQO New Energy. DAQO New Energy is trading at a lower price-to-earnings ratio than Disco, indicating that it is currently the more affordable of the two stocks.

Summary

Disco beats DAQO New Energy on 10 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 Disco

Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws. The company also offers precision processing tools, such as dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment. In addition, it is involved in the disassembly and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its products. Further, the company leases precision machines; and purchases and sells used machines. Additionally, it manufactures precision diamond abrasive tools, as well as offers chargeable processing services. The company was founded in 1937 and is headquartered in Tokyo, Japan.