Sunrun (NASDAQ:RUN – Get Free Report) and Solarmax Technology (NASDAQ:SMXT – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Risk & Volatility
Sunrun has a beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500. Comparatively, Solarmax Technology has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.
Valuation and Earnings
This table compares Sunrun and Solarmax Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sunrun | $2.04 billion | 1.75 | -$2.85 billion | ($11.61) | -1.33 |
| Solarmax Technology | $26.58 million | 1.94 | -$34.96 million | ($0.36) | -3.03 |
Solarmax Technology has lower revenue, but higher earnings than Sunrun. Solarmax Technology is trading at a lower price-to-earnings ratio than Sunrun, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
91.7% of Sunrun shares are held by institutional investors. 3.4% of Sunrun shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings for Sunrun and Solarmax Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sunrun | 1 | 9 | 12 | 1 | 2.57 |
| Solarmax Technology | 0 | 0 | 0 | 0 | 0.00 |
Sunrun presently has a consensus target price of $14.6264, indicating a potential downside of 5.58%. Given Sunrun’s stronger consensus rating and higher possible upside, analysts plainly believe Sunrun is more favorable than Solarmax Technology.
Profitability
This table compares Sunrun and Solarmax Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sunrun | -120.59% | 14.19% | 2.90% |
| Solarmax Technology | -62.91% | N/A | -23.36% |
Summary
Sunrun beats Solarmax Technology on 11 of the 15 factors compared between the two stocks.
About Sunrun
Sunrun Inc. designs, develops, installs, sells, owns, and maintains residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking; and solar leads generated to customers. In addition, the company offers battery storage along with solar energy systems; and sells services to commercial developers through multi-family and new homes. Its primary customers are residential homeowners. The company markets and sells its products through direct-to-consumer approach across online, retail, mass media, digital media, canvassing, field marketing, and referral channels, as well as its partner network. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.
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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