Financial Contrast: SolarMax Technology (NASDAQ:SMXT) and Ameresco (NYSE:AMRC)

SolarMax Technology (NASDAQ:SMXT) and Ameresco (NYSE:AMRC) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for SolarMax Technology and Ameresco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarMax Technology	0	0	0	0	N/A
Ameresco	0	4	12	0	2.75

Ameresco has a consensus target price of $44.69, suggesting a potential upside of 101.77%. Given Ameresco’s higher probable upside, analysts clearly believe Ameresco is more favorable than SolarMax Technology.

Profitability

This table compares SolarMax Technology and Ameresco’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
Ameresco	4.54%	7.49%	2.04%

Insider and Institutional Ownership

99.2% of Ameresco shares are owned by institutional investors. 41.8% of Ameresco shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares SolarMax Technology and Ameresco’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SolarMax Technology	$54.14 million	8.03	N/A	N/A	N/A
Ameresco	$1.37 billion	0.84	$62.47 million	$1.18	18.77

Ameresco has higher revenue and earnings than SolarMax Technology.

Summary

Ameresco beats SolarMax Technology on 8 of the 9 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; financing the sale 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. The Company was incorporated in 2008 and is based in Riverside, California.

About Ameresco

Ameresco, Inc., a clean technology integrator, provides a portfolio of energy efficiency and renewable energy supply solutions in the United States, Canada, Europe, and internationally. It operates through U.S. Regions, U.S. Federal, Canada, Europe, Alternative Fuels, and All Other segments. The company offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions for businesses and organizations. It designs, develops, engineers, and installs projects that reduce the energy, as well as operations and maintenance (O&M) costs of its customers' facilities; and projects primarily include various measures customized for the facility and designed to enhance the efficiency of building systems, such as heating, ventilation, cooling, and lighting systems. In addition, the company offers renewable energy solutions and services, such as the construction of small-scale plants that the company owns or develops for customers that produce electricity, gas, heat, or cooling from renewable sources of energy and O&M services; and electricity, processed renewable gas fuel, and heat or cooling produced from renewable sources of energy. Further, the company sells photovoltaic (PV) solar energy products and systems, as well as provides consulting, and enterprise energy management services; and operates wind farms. It serves the federal, state, local governments, healthcare and educational institutions, airports, public housing authorities and public universities, municipal utilities, and commercial and industrial customers. As of December 31, 2023, the company owned and operated 185 small-scale renewable energy plants and solar PV installations. Ameresco, Inc. was incorporated in 2000 and is headquartered in Framingham, Massachusetts.