Contrasting Solarmax Technology (NASDAQ:SMXT) and MasTec (NYSE:MTZ)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MasTec	3.07%	18.08%	5.97%
Solarmax Technology	-7.92%	N/A	-8.83%

Insider & Institutional Ownership

78.1% of MasTec shares are held by institutional investors. 21.4% of MasTec 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares MasTec and Solarmax Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MasTec	$16.11 billion	0.97	$399.04 million	$6.27	30.96
Solarmax Technology	$102.25 million	0.26	-$6.32 million	($1.82)	-3.04

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.

Risk & Volatility

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

Analyst Recommendations

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

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

MasTec presently has a consensus target price of $389.80, suggesting a potential upside of 100.80%. Given MasTec’s stronger consensus rating and higher possible upside, equities research analysts plainly believe MasTec is more favorable than Solarmax Technology.

Summary

MasTec beats Solarmax Technology on 13 of the 14 factors compared between the two stocks.

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.

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.