Comparing INNOVATE (NYSE:VATE) & Solarmax Technology (NASDAQ:SMXT)
by Sarita Garza · The Markets DailySolarmax Technology (NASDAQ:SMXT – Get Free Report) and INNOVATE (NYSE:VATE – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Risk & Volatility
Solarmax Technology has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, INNOVATE has a beta of 2.43, meaning that its stock price is 143% more volatile than the S&P 500.
Profitability
This table compares Solarmax Technology and INNOVATE’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% |
| INNOVATE | -1.48% | N/A | -2.35% |
Insider and Institutional Ownership
34.3% of INNOVATE shares are owned by institutional investors. 25.4% of Solarmax Technology shares are owned by insiders. Comparatively, 57.7% of INNOVATE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Solarmax Technology and INNOVATE, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Solarmax Technology | 1 | 0 | 0 | 0 | 1.00 |
| INNOVATE | 1 | 0 | 0 | 0 | 1.00 |
Valuation & Earnings
This table compares Solarmax Technology and INNOVATE”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Solarmax Technology | $90.98 million | 0.22 | -$6.32 million | ($1.32) | -3.23 |
| INNOVATE | $1.25 billion | 0.08 | -$60.60 million | ($1.87) | -3.82 |
Solarmax Technology has higher earnings, but lower revenue than INNOVATE. INNOVATE is trading at a lower price-to-earnings ratio than Solarmax Technology, indicating that it is currently the more affordable of the two stocks.
Summary
INNOVATE beats Solarmax Technology on 6 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 INNOVATE
INNOVATE Corp., through its subsidiaries, operates in infrastructure, life sciences, and spectrum areas in the United States. The Infrastructure segment provides industrial construction, structural steel, and facility maintenance services, such as fabrication and erection of structural steel and heavy steel plate services, and large-diameter water pipes and water storage tanks; fabrication of trusses and girders; and 3-D building information modeling and detailing for commercial, industrial, and infrastructure construction projects, such as buildings and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, metal processing, refineries, pulp and paper mills, and power plants. This segment also offers solutions for digital engineering, modeling and detailing, construction, and heavy equipment installation and facility services including maintenance, repair, and installation; and manufactures pollution control scrubbers, tunnel liners, pressure vessels, strainers, filters, separators, and customized products. The Life Sciences segment develops products to treat early osteoarthritis of the knee; and aesthetic and medical technologies for the skin. The Spectrum segment operates over-the-air broadcasting stations across the United States; and Azteca America, a Spanish-language broadcast network. The company was formerly known as HC2 Holdings, Inc. and changed its name to INNOVATE Corp. in September 2021. The company was incorporated in 1994 and is headquartered in New York, New York.