Financial Review: MasTec (NYSE:MTZ) vs. Solarmax Technology (NASDAQ:SMXT)

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

Earnings and Valuation

This table compares Solarmax Technology and MasTec”s 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)	-2.66
MasTec	$14.30 billion	1.16	$399.04 million	$6.27	33.00

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

Insider and Institutional Ownership

78.1% of MasTec shares are held by institutional investors. 25.4% of Solarmax Technology shares are held by company insiders. Comparatively, 21.4% of MasTec shares are held by company 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Solarmax Technology and MasTec, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solarmax Technology	1	0	0	0	1.00
MasTec	0	3	19	0	2.86

MasTec has a consensus target price of $389.80, suggesting a potential upside of 88.38%. Given MasTec’s stronger consensus rating and higher probable upside, analysts clearly believe MasTec is more favorable than Solarmax Technology.

Profitability

This table compares Solarmax Technology and MasTec’s 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%
MasTec	3.07%	18.08%	5.97%

Volatility & Risk

Solarmax Technology has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, MasTec has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Summary

MasTec 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 MasTec

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other. The company build infrastructure for wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy power generation; pipeline infrastructure, including natural gas, water, carbon capture sequestration, and other product transport; power delivery services, such as electrical and gas transmission, and distribution systems; industrial and heavy civil infrastructure, including roads, bridges, and rail; and water infrastructure. It also installs electrical and other gas distribution and transmission systems, power generation, power generation, civil and industrial facilities, pipelines, and fiber optic and other cables, as well as install-to-the-home services. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and civil and industrial and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, public and private energy providers, including renewable and other energy providers, pipeline operators, civil and industrial infrastructure providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.