Head to Head Analysis: Solarmax Technology (SMXT) versus The Competition

Solarmax Technology (NASDAQ:SMXT) is one of 188 public companies in the “Construction & Engineering” industry, but how does it contrast to its peers? We will compare Solarmax Technology to related businesses based on the strength of its earnings, dividends, risk, analyst recommendations, valuation, profitability and institutional ownership.

Institutional and Insider Ownership

48.9% of shares of all “Construction & Engineering” companies are owned by institutional investors. 25.4% of Solarmax Technology shares are owned by company insiders. Comparatively, 20.9% of shares of all “Construction & Engineering” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Solarmax Technology and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solarmax Technology	1	0	0	0	1.00
Solarmax Technology Competitors	842	3453	7325	356	2.60

As a group, “Construction & Engineering” companies have a potential upside of 43.11%. Given Solarmax Technology’s peers stronger consensus rating and higher probable upside, analysts plainly believe Solarmax Technology has less favorable growth aspects than its peers.

Profitability

This table compares Solarmax Technology and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solarmax Technology	-7.92%	N/A	-8.83%
Solarmax Technology Competitors	-4.05%	2.58%	3.81%

Risk & Volatility

Solarmax Technology has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Solarmax Technology’s peers have a beta of 1.56, indicating that their average share price is 56% more volatile than the S&P 500.

Valuation and Earnings

This table compares Solarmax Technology and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Solarmax Technology	$90.98 million	-$6.32 million	-2.59
Solarmax Technology Competitors	$9.61 billion	$456.60 million	-5,802.12

Solarmax Technology’s peers have higher revenue and earnings than Solarmax Technology. Solarmax Technology is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Solarmax Technology peers beat Solarmax Technology on 11 of the 12 factors compared.

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.