DAQO New Energy Corp. (DQ) vs Sunrun Inc. (RUN)

DAQO New Energy Corp. and Sunrun Inc. are both Solar companies. Sunrun Inc. is the larger, with a market value of $1.9B against $774.8M — 2.5× the size. DAQO New Energy Corp. has negative trailing earnings, so its P/E is not meaningful; Sunrun Inc. trades at 4.7×. Sunrun Inc. grew revenue faster over the last twelve months: 63.2% against −6.28%. Sunrun Inc. has the higher net margin (11.6% vs −34.5%) and the higher return on invested capital (0.31% vs −4.45%). Across the 19 metrics below, Sunrun Inc. leads on 12 and DAQO New Energy Corp. on 7.

Valuation

Metric DQ RUN Solar median
P/E n/m 4.74 10.93
P/S 0.28 0.56 0.54
P/B 0.03 0.44 1.44
Price to free cash flow n/m n/m 9.91
EV/EBITDA 4.89 19.02 9.90
EV/Sales (2.55) 4.60 0.74
Earnings yield (24.76%) 21.09% 0.00%
Free cash flow yield (174.96%) (114.08%) 0.00%

Profitability

Metric DQ RUN Solar median
Gross margin (35.45%) 35.29% 31.92%
Operating margin (52.20%) 2.66% (9.70%)
Net margin (34.50%) 11.59% (8.48%)
Free cash flow margin (47.06%) (63.62%) (2.95%)
Return on equity 0.00% 9.92% 5.34%
Return on assets (3.04%) 1.81% (5.36%)
Return on invested capital (4.45%) 0.31% (5.27%)

Growth

Metric DQ RUN Solar median
Revenue growth (TTM) (6.28%) 63.23% 16.97%
EPS growth (last fiscal year) 51.53% 113.35% —
Revenue growth, 5-year CAGR (0.30%) 26.24% 14.00%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DQ RUN Solar median
Debt to equity 0.00 3.46 0.09
Current ratio 5.81 1.42 1.33
Net debt to EBITDA 68.42 22.50 0.03

Dividend

Metric DQ RUN Solar median
Dividend yield 1.15% — —
Payout ratio 0.00 0.00 0.00

Size

Metric DQ RUN Solar median
Market cap 774.82m 1.90b 43.46m

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