Financial Review: Solarmax Technology (NASDAQ:SMXT) and Enphase Energy (NASDAQ:ENPH)

Solarmax Technology (NASDAQ:SMXT) and Enphase Energy (NASDAQ:ENPH) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Solarmax Technology and Enphase Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solarmax Technology	0	0	0	0	0.00
Enphase Energy	12	13	10	0	1.94

Enphase Energy has a consensus price target of $55.48, suggesting a potential upside of 44.32%. Given Enphase Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Enphase Energy is more favorable than Solarmax Technology.

Volatility & Risk

Solarmax Technology has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Institutional and Insider Ownership

72.1% of Enphase Energy shares are owned by institutional investors. 3.1% of Enphase Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Solarmax Technology and Enphase Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solarmax Technology	-62.91%	N/A	-23.36%
Enphase Energy	11.78%	24.55%	6.63%

Valuation and Earnings

This table compares Solarmax Technology and Enphase Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solarmax Technology	$22.99 million	2.55	-$34.96 million	($0.36)	-3.00
Enphase Energy	$1.33 billion	3.78	$102.66 million	$1.28	30.03

Enphase Energy has higher revenue and earnings than Solarmax Technology. Solarmax Technology is trading at a lower price-to-earnings ratio than Enphase Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Enphase Energy beats Solarmax Technology on 14 of the 14 factors compared between the two stocks.

About Solarmax Technology

SolarMax Technology, Inc., through its subsidiaries, operates as an integrated solar energy company in the United States and China. The company engages in the sale and installation of photovoltaic and battery backup systems; sale of LED systems; and identifying and procuring solar farm projects for resale to third parties, as well as provision of engineering, procuring, and construction services for solar farm projects. It serves residential, commercial, and government customers. SolarMax Technology, Inc. was incorporated in 2008 and is headquartered in Riverside, California.

About Enphase Energy

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control. It also provides microinverter units and related accessories, an IQ gateway; IQ batteries; the cloud-based Enlighten monitoring service; storage solutions; and electric vehicle charging solutions, as well as design, proposal, permitting, and lead generation services. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.