Quanta Services (NYSE:PWR) vs. Solarmax Technology (NASDAQ:SMXT) Critical Survey

Quanta Services (NYSE:PWR) and Solarmax Technology (NASDAQ:SMXT) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Volatility & Risk

Quanta Services has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Solarmax Technology has a beta of -0.34, indicating that its stock price is 134% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quanta Services	4.51%	23.56%	8.13%
Solarmax Technology	-7.92%	N/A	-8.83%

Insider and Institutional Ownership

90.5% of Quanta Services shares are held by institutional investors. 0.6% of Quanta Services shares are held by insiders. Comparatively, 25.4% of Solarmax Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quanta Services	$28.48 billion	2.68	$1.03 billion	$11.04	45.91
Solarmax Technology	$90.98 million	0.20	-$6.32 million	($1.82)	-2.08

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

Analyst Ratings

This is a breakdown of current ratings for Quanta Services and Solarmax Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quanta Services	3	6	23	1	2.67
Solarmax Technology	1	0	0	0	1.00

Quanta Services presently has a consensus price target of $763.81, indicating a potential upside of 50.70%. Given Quanta Services’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Quanta Services is more favorable than Solarmax Technology.

Summary

Quanta Services beats Solarmax Technology on 13 of the 14 factors compared between the two stocks.

About Quanta Services

Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company’s Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company’s Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company’s Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.

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.