Critical Review: Oxford Instruments (OTCMKTS:OXINF) vs. Daqo New Energy (NYSE:DQ)

Daqo New Energy (NYSE:DQGet Free Report) and Oxford Instruments (OTCMKTS:OXINFGet Free Report) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Daqo New Energy and Oxford Instruments, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Daqo New Energy 2 1 1 0 1.75
Oxford Instruments 0 0 0 0 N/A

Daqo New Energy currently has a consensus target price of $27.63, indicating a potential upside of 37.99%. Given Daqo New Energy’s higher possible upside, research analysts plainly believe Daqo New Energy is more favorable than Oxford Instruments.

Profitability

This table compares Daqo New Energy and Oxford Instruments’ 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%
Oxford Instruments N/A N/A N/A

Institutional and Insider Ownership

47.2% of Daqo New Energy 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Daqo New Energy has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Oxford Instruments has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Valuation and Earnings

This table compares Daqo New Energy and Oxford Instruments’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Daqo New Energy $2.31 billion 0.57 $429.55 million $2.13 9.40
Oxford Instruments $536.00 million 3.43 $70.63 million N/A N/A

Daqo New Energy has higher revenue and earnings than Oxford Instruments.

Summary

Daqo New Energy beats Oxford Instruments on 9 of the 11 factors compared between the two stocks.

About Daqo New Energy

(Get Free Report)

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 Oxford Instruments

(Get Free Report)

Oxford Instruments plc designs and supplies technology products and services in Europe, North America, Asia, and internationally. It operates through three segments: Materials & Characterisation, Research & Discovery, and Service & Healthcare. The company offers atomic force, electron, and raman microscopy; deposition and etch tools; low temperature systems; optical imaging; nuclear magnetic resonance, modular optical spectroscopy; and x-ray. Its products are used in various industries, such as advanced manufacturing, agriculture and food, astronomy, automotive and aerospace, bio imaging and life science, chemical and catalysis, energy generation and storage, forensics and environment, geology, petrology, mining, metals, alloys, composites, ceramics, pharma, photonics, polymers, quantum technologies, semiconductors, microelectronics, and data storage. Oxford Instruments plc was founded in 1959 and is headquartered in Abingdon, the United Kingdom.

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