Reviewing DAQO New Energy (NYSE:DQ) and Advanced Micro Devices (NASDAQ:AMD)

Advanced Micro Devices (NASDAQ:AMD) and DAQO New Energy (NYSE:DQ) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Earnings & Valuation

This table compares Advanced Micro Devices and DAQO New Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Micro Devices	N/A	N/A	N/A	$3.89	144.03
DAQO New Energy	$555.69 million	1.33	-$192.17 million	($2.84)	-3.86

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

Institutional and Insider Ownership

71.3% of Advanced Micro Devices shares are held by institutional investors. Comparatively, 47.2% of DAQO New Energy shares are held by institutional investors. 0.5% of Advanced Micro Devices shares are held by insiders. Comparatively, 24.3% of DAQO New Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Advanced Micro Devices and DAQO New Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Micro Devices	N/A	N/A	N/A
DAQO New Energy	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Advanced Micro Devices and DAQO New Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Micro Devices	1	8	31	3	2.84
DAQO New Energy	3	1	1	0	1.60

Advanced Micro Devices currently has a consensus target price of $606.76, indicating a potential upside of 8.30%. DAQO New Energy has a consensus target price of $15.83, indicating a potential upside of 44.50%. Given DAQO New Energy’s higher probable upside, analysts clearly believe DAQO New Energy is more favorable than Advanced Micro Devices.

Summary

Advanced Micro Devices beats DAQO New Energy on 6 of the 9 factors compared between the two stocks.

About Advanced Micro Devices

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, and AMD PRO A-Series brand names; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; and professional graphics under the AMD Radeon Pro graphics brand name. In addition, the company offers data center graphics under the Radeon Instinct and Radeon PRO V-series brands, as well as servers under the AMD Instinct accelerators brand; server microprocessors under the AMD EPYC brands; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo brand. It serves original equipment and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force, and sales representatives. Advanced Micro Devices, Inc. was incorporated in 1969 and is headquartered in Santa Clara, California.

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.