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DQ vs KARO

DQ
Daqo New Energy Corp.
NEUTRAL
Price
$22.99
Market Cap
$1.56B
Sector
Technology
AI Confidence
85%
KARO
Karooooo Ltd.
NEUTRAL
Price
$50.75
Market Cap
$1.57B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
DQ
--
KARO
25.25
Forward P/E
DQ
20.91
KARO
21.87
P/B Ratio
DQ
0.35
KARO
8.31
P/S Ratio
DQ
2.34
KARO
0.3
EV/EBITDA
DQ
-234.85
KARO
0.79

Profitability

Gross Margin
DQ
-20.72%
KARO
69.21%
Operating Margin
DQ
-8.39%
KARO
26.19%
Profit Margin
DQ
-25.62%
KARO
19.47%
ROE
DQ
-3.67%
KARO
33.58%
ROA
DQ
-2.6%
KARO
18.27%

Growth

Revenue Growth
DQ
13.5%
KARO
21.6%
Earnings Growth
DQ
--
KARO
11.3%

Financial Health

Debt/Equity
DQ
--
KARO
0.2
Current Ratio
DQ
5.38
KARO
0.84
Quick Ratio
DQ
4.14
KARO
0.84

Dividends

Dividend Yield
DQ
--
KARO
4.59%
Payout Ratio
DQ
0.0%
KARO
66.76%

AI Verdict

DQ NEUTRAL

DQ presents a classic deep-value paradox, characterized by a stable Piotroski F-Score of 5/9 and an exceptionally low Price-to-Book ratio of 0.35. While the company maintains a fortress-like liquidity position with a current ratio of 5.38, it is currently struggling with negative gross and operating margins. The extreme PEG ratio of 0.15 suggests significant undervaluation if growth persists, but this is offset by a dismal earnings track record and a bearish technical trend. Overall, the stock is a high-risk contrarian play where strong asset backing competes with operational inefficiency.

Strengths
Extreme valuation discount with a Price/Book ratio of 0.35
Very strong liquidity profile (Current Ratio 5.38, Quick Ratio 4.14)
Positive revenue growth trends (13.5% YoY, 23.23% Q/Q)
Risks
Negative gross margins (-20.72%) indicating fundamental pricing or cost issues
Poor earnings reliability with an average surprise of -57.73% over the last 4 quarters
Bearish technical trend (0/100) and significant 5-year price decline (-75%)
KARO NEUTRAL

KARO presents a dichotomy between strong operational profitability and weak market sentiment. While the Piotroski F-Score of 4/9 indicates stable financial health and the company boasts an impressive ROE of 33.58%, the technical trend is completely bearish (0/100) and insider sentiment is low (40/100). The stock is currently trading slightly above its growth-based intrinsic value of $48.14 and significantly above its defensive Graham Number of $16.62. Despite a very attractive Price/Sales ratio of 0.30, liquidity concerns are evident with a current ratio of 0.84.

Strengths
High profitability with 69.21% gross margins and 33.58% ROE
Strong revenue growth of 21.60% YoY
Consistent earnings beat track record (3 of last 4 quarters)
Risks
Liquidity risk indicated by a current ratio of 0.84 (below 1.0)
Strongly bearish technical trend (0/100)
Weak insider sentiment (40/100) suggesting lack of internal confidence

Compare Another Pair

DQ vs KARO: Head-to-Head Comparison

This page compares Daqo New Energy Corp. (DQ) and Karooooo Ltd. (KARO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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