Financial Review: SolarMax Technology (NASDAQ:SMXT) and Matrix Service (NASDAQ:MTRX)

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

Earnings and Valuation

This table compares Matrix Service and SolarMax Technology’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matrix Service	$795.02 million	0.40	-$52.36 million	($0.70)	-16.77
SolarMax Technology	$54.14 million	8.71	N/A	N/A	N/A

SolarMax Technology has lower revenue, but higher earnings than Matrix Service.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Matrix Service	-2.49%	-12.50%	-5.57%
SolarMax Technology	N/A	N/A	N/A

Insider and Institutional Ownership

78.4% of Matrix Service shares are held by institutional investors. 3.7% of Matrix Service shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Matrix Service and SolarMax Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matrix Service	0	0	1	0	3.00
SolarMax Technology	0	0	0	0	N/A

Matrix Service currently has a consensus target price of $15.00, indicating a potential upside of 27.77%. Given Matrix Service’s higher possible upside, analysts clearly believe Matrix Service is more favorable than SolarMax Technology.

Summary

Matrix Service beats SolarMax Technology on 5 of the 9 factors compared between the two stocks.

About Matrix Service

Matrix Service Company provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets in the United States, Canada, and internationally. It operates through three segments: Utility and Power Infrastructure; Process and Industrial Facilities; and Storage and Terminal Solutions. The Utility and Power Infrastructure segment offers power delivery services, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, and upgrades and maintenance, and emergency and storm restoration services. This segment also provides engineering, fabrication, and construction services for LNG utility peak shaving facilities; and construction and maintenance services to power generation facilities, including natural gas fired facilities. The Process and Industrial Facilities segment engages in the refining and processing of crude oil; fractionating and marketing of natural, gas and natural gas liquids; and offers plant maintenance, turnarounds, engineering, industrial cleaning services, and capital construction services. The Storage and Terminal Solutions segment undertakes work related to aboveground crude oil and refined product storage tanks and terminals; engineering, procurement, fabrication, and construction services related to cryogenic and other specialty tanks and terminals for LNG, NGLs, hydrogen, ammonia, propane, butane, liquid nitrogen/liquid oxygen, and liquid petroleum; and provides plant work, truck and rail loading/offloading facilities, and marine structures, as well as storage tank and terminal maintenance and repair. This segment also manufactures and sells precision engineered specialty tank products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Matrix Service Company was founded in 1984 and is headquartered in Tulsa, Oklahoma.

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.