Solarmax Technology (NASDAQ:SMXT) and SolarEdge Technologies (NASDAQ:SEDG) Head to Head Comparison

Solarmax Technology (NASDAQ:SMXT) and SolarEdge Technologies (NASDAQ:SEDG) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

95.1% of SolarEdge Technologies shares are owned by institutional investors. 0.7% of SolarEdge Technologies 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.

Profitability

This table compares Solarmax Technology and SolarEdge Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solarmax Technology	-62.91%	N/A	-23.36%
SolarEdge Technologies	-177.64%	-191.53%	-49.83%

Analyst Ratings

This is a summary of recent ratings and price targets for Solarmax Technology and SolarEdge Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solarmax Technology	0	0	0	0	0.00
SolarEdge Technologies	10	17	0	0	1.63

SolarEdge Technologies has a consensus target price of $18.54, indicating a potential downside of 47.71%. Given SolarEdge Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe SolarEdge Technologies is more favorable than Solarmax Technology.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solarmax Technology	$26.58 million	2.27	-$34.96 million	($0.36)	-3.08
SolarEdge Technologies	$901.46 million	2.34	-$1.81 billion	($29.96)	-1.18

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

Volatility & Risk

Solarmax Technology has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, SolarEdge Technologies has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.

Summary

SolarEdge Technologies beats Solarmax Technology on 8 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 SolarEdge Technologies

SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in the United States, Germany, the Netherlands, Italy, rest of Europe, and internationally. It operates in two segments, Solar and Energy Storage. The Solar segment offers power optimizers, inverters, batteries, storage solutions, electric vehicle chargers, smart tracking solutions, and smart energy management software products; Monitoring platform, a cloud-based monitoring platform, which collects power, voltage, current, and system data sent from inverters and power optimizers; and MySolarEdge app, that enables system owners to track their real-time system production and household energy consumption. This segment also provides Designer platform, an web-based tool that helps solar professionals to plan, build, and validate residential and commercial systems; Mapper application for registering the physical layout of new PV sites installed with DC optimized inverter systems; SetApp application that activates and configurate inverters; and grid services. The Energy Storage segment provides lithium-ion cells and containerized battery systems (BESS) solutions for commercial, industrial, and utility markets; modules and racks; purpose-built components and solutions, and hardware and software tools; and pre and post sales engineering support for designing, building, and managing battery and system solutions. The company offers e-mobility products, automated machines, and UPS products; and pre-sales support, ongoing trainings, and technical support and after installation services. It sells its products through solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was incorporated in 2006 and is headquartered in Herzliya, Israel.