This paper systematically studies a new kind of PM machines with both stator and rotor PM excitations, namely, dual-PM excited machines. The key is to rely on the PM-iron structure in the machine to provide both PM excitation and flux modulation. Besides the fundamental field component in the air-gap, some other predominant harmonics introduced by the flux modulating effect can also contribute to the electromagnetic torque production. Therefore, this kind of machines can be designed with high torque density. Four dual-PM excited machine concepts with the same rotor configuration but different stator structures are comparatively studied, which include double-stator PM machine, stator multitooth-PM machine, stator slot-PM machine, and stator tooth-PM machine (STPM). Based on the flux modulating effect, the general design principle of the dual-PM machines is proposed in this paper. Through analytically investigating the air-gap field harmonics, the physical insight of the dual-PM machines is brought forward. All the four machines are optimized using an improved Tabu search coupled with finite element method, and their electromagnetic performances are comprehensively studied and compared. A prototype of STPM is manufactured. Experimental tests are conducted and the results well verify the electromagnetic design.