Financial Review: Solarmax Technology (NASDAQ:SMXT) vs. Brookfield Business (NYSE:BBUC)

Solarmax Technology (NASDAQ:SMXT) and Brookfield Business (NYSE:BBUC) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Profitability

This table compares Solarmax Technology and Brookfield Business’ 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%
Brookfield Business	1.13%	2.05%	0.40%

Institutional & Insider Ownership

85.0% of Brookfield Business shares are held by institutional investors. 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.

Volatility and Risk

Solarmax Technology has a beta of -0.34, suggesting that its share price is 134% less volatile than the S&P 500. Comparatively, Brookfield Business has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solarmax Technology	$90.98 million	0.23	-$6.32 million	($1.82)	-2.40
Brookfield Business	$27.46 billion	0.23	-$26.00 million	($0.39)	-77.60

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

Analyst Recommendations

This is a summary of current ratings and target prices for Solarmax Technology and Brookfield Business, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solarmax Technology	1	0	0	0	1.00
Brookfield Business	1	2	4	0	2.43

Brookfield Business has a consensus target price of $36.17, suggesting a potential upside of 19.50%. Given Brookfield Business’ stronger consensus rating and higher possible upside, analysts plainly believe Brookfield Business is more favorable than Solarmax Technology.

Summary

Brookfield Business beats Solarmax Technology on 10 of the 13 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 Brookfield Business

Brookfield Business Corporation focuses on healthcare, construction, and wastewater services in the United States, Europe, Australia, the United Kingdom, Canada, and Brazil. It operates through three segments: Business Services, Infrastructure Services, and Industrials. The company operates 42 hospitals; offers construction services for office, residential, hospitality and leisure, social infrastructure, retail, and mixed-use properties; and provides nuclear technology services, such as fuel, maintenance services, engineering solutions, instrumentation and control systems, and manufactured components for nuclear power plants. It also engages in the collection, treatment, and distribution of water and wastewater to the residential and governmental customers. The company was incorporated in 2021 and is headquartered in New York, New York.