Quanta Services (NYSE:PWR – Get Free Report) and Solarmax Technology (NASDAQ:SMXT – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.
Institutional & Insider Ownership
90.5% of Quanta Services shares are owned by institutional investors. 0.6% of Quanta Services 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for Quanta Services and Solarmax Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quanta Services | 3 | 7 | 23 | 0 | 2.61 |
| Solarmax Technology | 1 | 0 | 0 | 0 | 1.00 |
Quanta Services presently has a consensus target price of $766.62, suggesting a potential upside of 23.55%. Given Quanta Services’ stronger consensus rating and higher probable upside, equities analysts plainly believe Quanta Services is more favorable than Solarmax Technology.
Earnings & Valuation
This table compares Quanta Services and Solarmax Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quanta Services | $28.48 billion | 3.28 | $1.03 billion | $11.04 | 56.20 |
| Solarmax Technology | $90.98 million | 0.25 | -$6.32 million | ($1.82) | -2.59 |
Quanta Services has higher revenue and earnings than Solarmax Technology. Solarmax Technology is trading at a lower price-to-earnings ratio than Quanta Services, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Quanta Services and Solarmax Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quanta Services | 4.51% | 23.56% | 8.13% |
| Solarmax Technology | -7.92% | N/A | -8.83% |
Volatility & Risk
Quanta Services has a beta of 1.27, meaning that its stock price is 27% 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
Quanta Services beats Solarmax Technology on 13 of the 14 factors compared between the two stocks.
About Quanta Services
Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company’s Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company’s Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company’s Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.
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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