Solarmax Technology (NASDAQ:SMXT) and Quanta Services (NYSE:PWR) Head-To-Head Survey

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

Valuation & Earnings

This table compares Solarmax Technology and Quanta Services”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	0.25	-$6.32 million	($1.82)	-2.59
Quanta Services	$28.48 billion	3.28	$1.03 billion	$11.04	56.20

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.

Profitability

This table compares Solarmax Technology and Quanta Services’ 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%
Quanta Services	4.51%	23.56%	8.13%

Institutional and Insider Ownership

90.5% of Quanta Services shares are owned by institutional investors. 25.4% of Solarmax Technology shares are owned by insiders. Comparatively, 0.6% of Quanta Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Solarmax Technology has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Quanta Services has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solarmax Technology	1	0	0	0	1.00
Quanta Services	3	7	23	0	2.61

Quanta Services has a consensus target price of $766.62, indicating a potential upside of 23.55%. Given Quanta Services’ stronger consensus rating and higher probable upside, 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 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 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.