Daqo New Energy (NYSE:DQ) and Spi Energy (NYSE:SPI) Critical Analysis

Spi Energy (NASDAQ:SPI) and Daqo New Energy (NYSE:DQ) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Volatility and Risk

Spi Energy has a beta of 4.7, indicating that its share price is 370% more volatile than the S&P 500. Comparatively, Daqo New Energy has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Spi Energy and Daqo New Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spi Energy 0 0 0 0 N/A
Daqo New Energy 0 0 2 0 3.00

Daqo New Energy has a consensus price target of $50.00, indicating a potential upside of 31.30%. Given Daqo New Energy’s higher possible upside, analysts clearly believe Daqo New Energy is more favorable than Spi Energy.

Profitability

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

Net Margins Return on Equity Return on Assets
Spi Energy N/A N/A N/A
Daqo New Energy 6.79% 5.68% 3.20%

Insider & Institutional Ownership

0.1% of Spi Energy shares are owned by institutional investors. Comparatively, 40.4% of Daqo New Energy shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Spi Energy and Daqo New Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spi Energy $125.58 million 0.22 -$12.28 million N/A N/A
Daqo New Energy $301.60 million 1.37 $38.13 million $4.44 8.58

Daqo New Energy has higher revenue and earnings than Spi Energy.

Summary

Daqo New Energy beats Spi Energy on 9 of the 10 factors compared between the two stocks.

Spi Energy Company Profile

SPI Energy Co., Ltd. provides photovoltaic solutions for business, residential, government, and utility customers and investors. It offers engineering, procurement, and construction services to independent power developers and producers, and commercial and industrial companies. The company also develops, owns, and operates solar projects that sell electricity to power companies and other electricity off-takers. As of December 31, 2017, it owned and operated 73.12 megawatts of solar projects. The company operates in China, Greece, the United States, Italy, Japan, the United Kingdom, Australia, and Germany. SPI Energy Co., Ltd. is headquartered in Shatin, Hong Kong.

Daqo New Energy Company Profile

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon and wafers in the People's Republic of China. It operates through two segments, Polysilicon and Wafers. The company offers polysilicon to photovoltaic product manufacturers who further process its polysilicon into ingots, wafers, cells, and modules for solar power solutions. It also provides multi-crystalline wafers. 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 headquartered in Wanzhou, the People's Republic of China.

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