Dycom Industries (NYSE:DY – Get Free Report) and Solarmax Technology (NASDAQ:SMXT – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Valuation & Earnings
This table compares Dycom Industries and Solarmax Technology”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dycom Industries | $6.88 billion | 1.11 | $281.19 million | $10.99 | 23.10 |
| Solarmax Technology | $90.98 million | 0.26 | -$6.32 million | ($1.82) | -2.73 |
Dycom Industries has higher revenue and earnings than Solarmax Technology. Solarmax Technology is trading at a lower price-to-earnings ratio than Dycom Industries, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Dycom Industries and Solarmax Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dycom Industries | 4.79% | 25.30% | 8.39% |
| Solarmax Technology | -7.92% | N/A | -8.83% |
Insider & Institutional Ownership
98.3% of Dycom Industries shares are held by institutional investors. 1.2% of Dycom Industries shares are held by company insiders. Comparatively, 25.4% of Solarmax Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings for Dycom Industries and Solarmax Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dycom Industries | 0 | 2 | 10 | 0 | 2.83 |
| Solarmax Technology | 1 | 0 | 0 | 0 | 1.00 |
Dycom Industries presently has a consensus target price of $502.92, indicating a potential upside of 98.11%. Given Dycom Industries’ stronger consensus rating and higher possible upside, research analysts plainly believe Dycom Industries is more favorable than Solarmax Technology.
Volatility and Risk
Dycom Industries has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Solarmax Technology has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.
Summary
Dycom Industries beats Solarmax Technology on 13 of the 14 factors compared between the two stocks.
About Dycom Industries
Dycom Industries, Inc. provides specialty contracting services to the telecommunications infrastructure and utility industries in the United States. The company offers engineering services to telecommunications providers, including the planning and design of aerial, underground, and buried fiber optic, copper, and coaxial cable systems; wireless networks in connection with the deployment of macro cell and new small cell sites; and program and project management and inspection personnel. It also provides construction, maintenance, and installation services for telephone companies and cable multiple system operators, such as placement and splicing of copper, fiber, and coaxial cables; tower construction, lines and antenna installation, foundation and equipment pad construction, and small cell site placement for wireless carriers, as well as equipment installation and material fabrication, and site testing services; underground facility locating services comprising locating telephone, cable television, power, water, sewer, and gas lines; installation and maintenance of customer premise equipment, including digital video recorders, set top boxes, and modems for cable system operators; and construction and maintenance services for electric and gas utilities, and other customers. Dycom Industries, Inc. was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.
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.
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