Critical Comparison: SolarMax Technology (NASDAQ:SMXT) and TopBuild (NYSE:BLD)

SolarMax Technology (NASDAQ:SMXT) and TopBuild (NYSE:BLD) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Valuation & Earnings

This table compares SolarMax Technology and TopBuild’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SolarMax Technology	$47.03 million	4.06	$440,000.00	N/A	N/A
TopBuild	$5.19 billion	2.34	$614.25 million	$19.84	19.23

TopBuild has higher revenue and earnings than SolarMax Technology.

Profitability

This table compares SolarMax Technology and TopBuild’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SolarMax Technology	N/A	N/A	N/A
TopBuild	12.11%	25.87%	12.61%

Analyst Ratings

This is a summary of recent ratings for SolarMax Technology and TopBuild, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarMax Technology	0	0	0	0	N/A
TopBuild	0	2	9	0	2.82

TopBuild has a consensus price target of $420.90, indicating a potential upside of 10.33%. Given TopBuild’s higher probable upside, analysts clearly believe TopBuild is more favorable than SolarMax Technology.

Insider & Institutional Ownership

95.7% of TopBuild shares are held by institutional investors. 0.5% of TopBuild shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

TopBuild beats SolarMax Technology on 9 of the 10 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 TopBuild

TopBuild Corp., together with its subsidiaries, engages in the installation and distribution of insulation and other building material products to the construction industry. The company operates in two segments, Installation and Specialty Distribution. It provides insulation products and accessories, glass and windows, rain gutters, garage doors, fireplaces, roofing materials, closet shelving, and other products. The company also offers insulation installation services for fiberglass batts and rolls, blown-in loose fill fiberglass, polyurethane spray foam, and blown-in loose fill cellulose applications. In addition, it distributes building and mechanical insulation, insulation accessories, and other building product materials for the residential, commercial, and industrial end markets. The company serves single-family homebuilders, single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders. It operates installation branches and distribution centers in the United States and Canada. The company was formerly known as Masco SpinCo Corp. and changed its name to TopBuild Corp. in March 2015. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida.