Head-To-Head Comparison: Solarmax Technology (NASDAQ:SMXT) and FTC Solar (NASDAQ:FTCI)

Solarmax Technology (NASDAQ:SMXT) and FTC Solar (NASDAQ:FTCI) are both small-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solarmax Technology	-6.95%	N/A	-11.16%
FTC Solar	-77.16%	-549.96%	-35.70%

Earnings & Valuation

This table compares Solarmax Technology and FTC Solar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solarmax Technology	$90.98 million	0.39	-$6.32 million	($0.13)	-4.82
FTC Solar	$99.69 million	0.77	-$79.58 million	($5.60)	-0.88

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

Institutional & Insider Ownership

45.4% of FTC Solar shares are held by institutional investors. 25.4% of Solarmax Technology shares are held by company insiders. Comparatively, 21.0% of FTC Solar shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Solarmax Technology has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, FTC Solar has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Solarmax Technology and FTC Solar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solarmax Technology	1	0	0	0	1.00
FTC Solar	1	2	3	0	2.33

FTC Solar has a consensus target price of $13.25, indicating a potential upside of 168.76%. Given FTC Solar’s stronger consensus rating and higher possible upside, analysts plainly believe FTC Solar is more favorable than Solarmax Technology.

Summary

FTC Solar beats Solarmax Technology on 8 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 FTC Solar

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 and is headquartered in Austin, Texas.