Daqo New Energy Corp ADR (DQ)vsLam Research Corp (LRCX)
DQ
Daqo New Energy Corp ADR
$11.54
-1.45%
TECHNOLOGY · Cap: $815.38M
LRCX
Lam Research Corp
$298.22
+0.07%
TECHNOLOGY · Cap: $373.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 4081% more annual revenue ($23.23B vs $555.69M). LRCX leads profitability with a 31.3% profit margin vs -34.5%. DQ appears more attractively valued with a PEG of 0.17. LRCX earns a higher WallStSmart Score of 78/100 (B+).
DQ
Hold42
out of 100
Grade: D
LRCX
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+38.3%
Fair Value
$41.83
Current Price
$11.54
$30.29 discount
Margin of Safety
+15.2%
Fair Value
$351.66
Current Price
$298.22
$53.44 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 58 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 37.4%
Revenue surging 30.0% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Smaller company, higher risk/reward
Weak financial health signals
ROE of -4.4% — below average capital efficiency
Revenue declined 16.7%
Premium valuation, high expectations priced in
Trading at 29.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : DQ
The strongest argument for DQ centers on PEG Ratio, Price/Book. PEG of 0.17 suggests the stock is reasonably priced for its growth.
Bull Case : LRCX
The strongest argument for LRCX centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.3% and operating margin at 37.4%. Revenue growth of 30.0% demonstrates continued momentum.
Bear Case : DQ
The primary concerns for DQ are Market Cap, Piotroski F-Score, Return on Equity.
Bear Case : LRCX
The primary concerns for LRCX are P/E Ratio, Price/Book. A P/E of 51.9x leaves little room for execution misses.
Key Dynamics to Monitor
DQ profiles as a turnaround stock while LRCX is a growth play — different risk/reward profiles.
LRCX carries more volatility with a beta of 1.86 — expect wider price swings.
LRCX is growing revenue faster at 30.0% — sustainability is the question.
LRCX generates stronger free cash flow (822M), providing more financial flexibility.
Bottom Line
LRCX scores higher overall (78/100 vs 42/100), backed by strong 31.3% margins and 30.0% revenue growth. DQ offers better value entry with a 38.3% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Daqo New Energy Corp ADR
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · China
Daqo New Energy Corp. The company is headquartered in Shanghai, the People's Republic of China.
Visit Website →Lam Research Corp
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Lam Research Corporation is an American corporation that engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. Its products are used primarily in front-end wafer processing, which involves the steps that create the active components of semiconductor devices (transistors, capacitors) and their wiring (interconnects). The company also builds equipment for back-end wafer-level packaging (WLP), and for related manufacturing markets such as for microelectromechanical systems (MEMS). The company is headquartered in Fremont, California, in the Silicon Valley.
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