Contrasting Solarmax Technology (SMXT) and Its Competitors

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Solarmax Technology and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solarmax Technology	1	0	0	0	1.00
Solarmax Technology Competitors	849	3465	7352	362	2.60

As a group, “Construction & Engineering” companies have a potential upside of 49.33%. Given Solarmax Technology’s peers stronger consensus rating and higher probable upside, analysts clearly believe Solarmax Technology has less favorable growth aspects than its peers.

Volatility and Risk

Solarmax Technology has a beta of -0.34, meaning that its stock price is 134% less volatile than the S&P 500. Comparatively, Solarmax Technology’s peers have a beta of 1.60, meaning that their average stock price is 60% more volatile than the S&P 500.

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	-4.03%	2.63%	3.80%

Insider & Institutional Ownership

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

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	-2.09
Solarmax Technology Competitors	$9.57 billion	$456.60 million	-5,802.22

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 13 factors compared.

Solarmax Technology Company Profile

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.