Solarmax Technology (NASDAQ:SMXT – Get Free Report) and Regal Rexnord (NYSE:RRX – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Valuation & Earnings
This table compares Solarmax Technology and Regal Rexnord”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Solarmax Technology | $90.98 million | 0.24 | -$6.32 million | ($0.11) | -3.46 |
| Regal Rexnord | $5.93 billion | 2.00 | $279.50 million | $4.30 | 41.46 |
Analyst Recommendations
This is a summary of current ratings for Solarmax Technology and Regal Rexnord, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Solarmax Technology | 1 | 0 | 0 | 0 | 1.00 |
| Regal Rexnord | 0 | 3 | 8 | 0 | 2.73 |
Regal Rexnord has a consensus price target of $244.92, indicating a potential upside of 37.38%. Given Regal Rexnord’s stronger consensus rating and higher possible upside, analysts clearly believe Regal Rexnord is more favorable than Solarmax Technology.
Risk & Volatility
Solarmax Technology has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, Regal Rexnord has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.
Profitability
This table compares Solarmax Technology and Regal Rexnord’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Solarmax Technology | -5.40% | N/A | -7.25% |
| Regal Rexnord | 5.35% | 9.93% | 4.91% |
Institutional and Insider Ownership
99.7% of Regal Rexnord shares are held by institutional investors. 25.4% of Solarmax Technology shares are held by company insiders. Comparatively, 0.6% of Regal Rexnord shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Regal Rexnord beats Solarmax Technology on 13 of the 14 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 Regal Rexnord
Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.
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