Stantec (NYSE:STN) vs. Solarmax Technology (NASDAQ:SMXT) Head-To-Head Review

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

Risk & Volatility

Stantec has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Solarmax Technology has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stantec	5.91%	19.70%	8.07%
Solarmax Technology	-7.92%	N/A	-8.83%

Institutional & Insider Ownership

63.9% of Stantec shares are owned by institutional investors. 0.5% of Stantec shares are owned by company insiders. Comparatively, 25.4% of Solarmax Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Stantec and Solarmax Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stantec	$5.83 billion	1.37	$343.11 million	$3.21	22.16
Solarmax Technology	$90.98 million	0.22	-$6.32 million	($1.82)	-2.35

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

Analyst Ratings

This is a breakdown of recent ratings for Stantec and Solarmax Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stantec	0	2	5	0	2.71
Solarmax Technology	1	0	0	0	1.00

Stantec presently has a consensus price target of $175.00, suggesting a potential upside of 146.03%. Given Stantec’s stronger consensus rating and higher probable upside, equities analysts plainly believe Stantec is more favorable than Solarmax Technology.

Summary

Stantec beats Solarmax Technology on 12 of the 13 factors compared between the two stocks.

About Stantec

Stantec Inc. provides professional services in the areas of infrastructure and facilities to the public and private sectors in Canada, the United States, and internationally. It offers evaluation, planning, and designing infrastructure solutions; solutions for sustainable water resources, planning, management, and infrastructure; environmental services; integrated architecture, engineering, interior design, and planning solutions for buildings; and energy and resources solutions. The company also provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. In addition, it offers planning and design services to clients in residential, logistics, retail, infrastructure, energy, higher education, and urban regeneration sectors; architectural and interior design, and planning services in the science and technology, commercial workplace, higher education, residential, and hospitality markets. Further, the company provides transportation advisory, transport engineering, and technical design; project delivery consultancy services for mining, resources, and industrial infrastructure projects; paleontological and archaeological services for the rail, transportation, water, and power and energy sectors; and environmental and cultural resource compliance services. Additionally, it offers consulting services in sustainable building design, energy infrastructure upgrades, sustainable district heating network, and e-mobility; and planning, design, construction administration, commissioning, maintenance, decommissioning, and remediation services. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.

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.