On Track Innovations (OTCMKTS:OTIVF) and Daqo New Energy (OTCMKTS:DQ) Critical Comparison

On Track Innovations (OTCMKTS:OTIVF) and Daqo New Energy (NYSE:DQ) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for On Track Innovations and Daqo New Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
On Track Innovations 0 0 0 0 N/A
Daqo New Energy 0 0 3 0 3.00

Daqo New Energy has a consensus price target of $60.00, indicating a potential upside of 0.30%. Given Daqo New Energy’s higher probable upside, analysts clearly believe Daqo New Energy is more favorable than On Track Innovations.

Insider & Institutional Ownership

0.1% of On Track Innovations shares are held by institutional investors. Comparatively, 47.7% of Daqo New Energy shares are held by institutional investors. 3.2% of On Track Innovations shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
On Track Innovations -39.92% -54.82% -24.44%
Daqo New Energy 8.44% 6.18% 3.25%

Risk and Volatility

On Track Innovations has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Daqo New Energy has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Earnings & Valuation

This table compares On Track Innovations and Daqo New Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
On Track Innovations $14.75 million 0.59 -$5.89 million N/A N/A
Daqo New Energy $349.99 million 1.85 $29.52 million $2.02 29.61

Daqo New Energy has higher revenue and earnings than On Track Innovations.

Summary

Daqo New Energy beats On Track Innovations on 11 of the 12 factors compared between the two stocks.

About On Track Innovations

On Track Innovations Ltd. designs, develops, and markets cashless payment solutions worldwide. It operates in two segments, Retail and Mass Transit Ticketing; and Petroleum. The company offers OTI UNO, a single interface and contactless reader that support the major card associations' applications, as well as wallets, such as Apple Pay, Google Pay, and Samsung Pay; OTI TRIO, a near-field communication and contactless reader, which offers three-in-one cashless payment card options comprising magnetic stripe (swipe), contact (chip), and contactless (tap); and OTI Interno, an original equipment manufacturer reader module with integrated antenna used for integration into mass transit validators and terminals. It also provides OTI TeleBox which enables communication between machines primarily for vending machines, kiosks, and meters; OTI GoBox, a machine-to-machine cashless payment and telemetry gateway primarily used to stream Full-HD media and run either Linux or Android; otiMetry, a telemetry solution for smart vending which also enables cashless payments; otiKiosk, a cashless payment acceptance and remote management solution for kiosks and self-service environments; and otiPulse, a cashless payment solution for pulse operated machines. In addition, the company offers ticket vending machines, which are encoding and loading electronic card tickets for the public transport and for selling paper tickets, as well as resells tickets through point of sale terminals. Further, it provides EasyFuel Plus, a fuel management and payment solution used to control and manage refueling operations; and MediSmart, an information management and claims submission system for the medical sector. The company was formerly known as De-Bug Innovations Ltd. and changed its name to On Track Innovations Ltd. in July 1991. On Track Innovations Ltd. was founded in 1990 and is headquartered in Rosh Pina, Israel.

About Daqo New Energy

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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