Brookfield Business (NYSE:BBUC – Get Free Report) and Solarmax Technology (NASDAQ:SMXT – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.
Institutional & Insider Ownership
85.0% of Brookfield Business shares are held by institutional investors. 25.4% of Solarmax Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Brookfield Business and Solarmax Technology”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brookfield Business | $27.46 billion | 0.22 | -$26.00 million | ($0.39) | -75.98 |
| Solarmax Technology | $90.98 million | 0.20 | -$6.32 million | ($1.82) | -2.09 |
Solarmax Technology has lower revenue, but higher earnings 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 for Brookfield Business and Solarmax Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brookfield Business | 1 | 3 | 3 | 0 | 2.29 |
| Solarmax Technology | 1 | 0 | 0 | 0 | 1.00 |
Brookfield Business presently has a consensus target price of $36.17, suggesting a potential upside of 22.06%. Given Brookfield Business’ stronger consensus rating and higher possible upside, research analysts plainly believe Brookfield Business is more favorable than Solarmax Technology.
Profitability
This table compares Brookfield Business and Solarmax Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brookfield Business | 2.48% | 4.48% | 0.87% |
| Solarmax Technology | -7.92% | N/A | -8.83% |
Risk and Volatility
Brookfield Business has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Solarmax Technology has a beta of -0.34, meaning that its stock price is 134% less volatile than the S&P 500.
Summary
Brookfield Business beats Solarmax Technology on 11 of the 14 factors compared between the two stocks.
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.
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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