Critical Analysis: Solarmax Technology (NASDAQ:SMXT) versus T1 Energy (NYSE:TE)

T1 Energy (NYSE:TEGet Free Report) and Solarmax Technology (NASDAQ:SMXTGet Free Report) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Earnings & Valuation

This table compares T1 Energy and Solarmax Technology”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
T1 Energy $755.29 million 3.91 -$367.83 million ($2.03) -5.20
Solarmax Technology $90.98 million 0.34 -$6.32 million ($0.11) -5.01

Solarmax Technology has lower revenue, but higher earnings than T1 Energy. T1 Energy is trading at a lower price-to-earnings ratio than Solarmax Technology, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares T1 Energy and Solarmax Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
T1 Energy -42.30% -150.51% -20.94%
Solarmax Technology -5.40% N/A -7.25%

Analyst Ratings

This is a breakdown of current recommendations and price targets for T1 Energy and Solarmax Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
T1 Energy 1 1 4 1 2.71
Solarmax Technology 1 0 0 0 1.00

T1 Energy currently has a consensus target price of $8.00, suggesting a potential downside of 24.29%. Given T1 Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe T1 Energy is more favorable than Solarmax Technology.

Volatility and Risk

T1 Energy has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, Solarmax Technology has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500.

Insider and Institutional Ownership

52.3% of T1 Energy shares are owned by institutional investors. 22.4% of T1 Energy shares are owned by insiders. Comparatively, 25.4% of Solarmax Technology shares 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.

Summary

T1 Energy beats Solarmax Technology on 8 of the 15 factors compared between the two stocks.

About T1 Energy

(Get Free Report)

T1 Energy Inc. is an energy solutions provider building an integrated supply chain for solar and batteries. T1 Energy Inc. , formerly known as FREYR Battery, is based in NEW YORK.

About Solarmax Technology

(Get Free Report)

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.

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