Head-To-Head Survey: Tigo Energy (NASDAQ:TYGO) versus Solarmax Technology (NASDAQ:SMXT)

Solarmax Technology (NASDAQ:SMXT) and Tigo Energy (NASDAQ:TYGO) are both small-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

15.7% of Tigo Energy shares are held by institutional investors. 25.4% of Solarmax Technology shares are held by insiders. Comparatively, 26.6% of Tigo Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solarmax Technology	-5.40%	N/A	-7.25%
Tigo Energy	3.07%	-41.48%	-9.99%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Solarmax Technology and Tigo Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solarmax Technology	1	0	0	0	1.00
Tigo Energy	1	0	2	0	2.33

Tigo Energy has a consensus price target of $6.47, suggesting a potential upside of 58.89%. Given Tigo Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Tigo Energy is more favorable than Solarmax Technology.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solarmax Technology	$98.89 million	0.32	-$6.32 million	($0.11)	-5.01
Tigo Energy	$103.54 million	2.98	-$1.88 million	$0.04	101.75

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

Volatility & Risk

Solarmax Technology has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, Tigo Energy has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Summary

Tigo Energy beats Solarmax Technology on 12 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 Tigo Energy

Tigo Energy, Inc. provides solar and energy storage solutions for the solar industry. It offers module level power electronics (MLPEs) to maximize the energy output of individual solar modules. The company also provides GO Energy Storage Systems that provide solar energy storage management capabilities; and Energy Intelligence (EI) platform, which provides monitoring and energy demand forecasting capabilities. In addition, it offers GO Battery that provides energy resilience in the event of a grid outage and optimizes energy consumption based on rate plans for home energy needs; GO Inverter, which offers energy conversion for home consumption or export to the grid; GO Link/Automatic Transfer Switch (ATS), a component for battery backup of on-grid systems; and GO Electric Vehicle (EV) Charger to reduce transportation costs. The company serves residential, commercial, and utility sectors through distributors and solar installers in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. Tigo Energy, Inc. was founded in 2007 and is headquartered in Campbell, California.