Cirrus Logic (NASDAQ:CRUS) versus DAQO New Energy (NYSE:DQ) Head-To-Head Comparison

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cirrus Logic and DAQO New Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cirrus Logic	2	3	4	0	2.22
DAQO New Energy	3	1	1	0	1.60

Cirrus Logic currently has a consensus target price of $147.50, indicating a potential upside of 22.72%. DAQO New Energy has a consensus target price of $13.73, indicating a potential upside of 25.43%. Given DAQO New Energy’s higher possible upside, analysts clearly believe DAQO New Energy is more favorable than Cirrus Logic.

Insider & Institutional Ownership

88.0% of Cirrus Logic shares are held by institutional investors. Comparatively, 47.2% of DAQO New Energy shares are held by institutional investors. 1.2% of Cirrus Logic shares are held by insiders. Comparatively, 24.3% of DAQO New Energy shares are held by 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

Cirrus Logic has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, DAQO New Energy has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cirrus Logic and DAQO New Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cirrus Logic	$2.00 billion	3.00	$414.41 million	$7.92	15.18
DAQO New Energy	$665.41 million	1.11	-$170.51 million	($3.40)	-3.22

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

Profitability

This table compares Cirrus Logic and DAQO New Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cirrus Logic	20.20%	19.77%	16.87%
DAQO New Energy	-45.46%	-3.90%	-3.58%

Summary

Cirrus Logic beats DAQO New Energy on 12 of the 14 factors compared between the two stocks.

About Cirrus Logic

Cirrus Logic is a fabless semiconductor company that designs high-performance, low-power integrated circuits, with a focus on audio and mixed-signal technologies. Its products include audio converters and codecs, amplifiers, and other components used to capture, process, and reproduce sound. The company also develops mixed-signal products for applications such as haptics and power management. Its chips are designed for a range of markets, including smartphones, computers, consumer audio equipment, automotive systems, and industrial devices.

About DAQO New Energy

DAQO New Energy Corp. is a manufacturer of high-purity polysilicon, a key raw material used to produce solar wafers, cells and modules. Its products support the photovoltaic supply chain and the broader deployment of solar power. Founded in 2007, the company operates manufacturing facilities in China. Its customers include manufacturers of solar wafers and other photovoltaic products, primarily in China, as well as customers in international markets.