Analyzing INNOVATE (NYSE:VATE) and Solarmax Technology (NASDAQ:SMXT)

INNOVATE (NYSE:VATE) and Solarmax Technology (NASDAQ:SMXT) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Valuation & Earnings

This table compares INNOVATE and Solarmax Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
INNOVATE	$1.25 billion	0.08	-$60.60 million	($1.87)	-3.84
Solarmax Technology	$90.98 million	0.18	-$6.32 million	($1.32)	-2.59

Solarmax Technology has lower revenue, but higher earnings 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for INNOVATE and Solarmax Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
INNOVATE	1	0	0	0	1.00
Solarmax Technology	1	0	0	0	1.00

Profitability

This table compares INNOVATE and Solarmax Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
INNOVATE	-1.48%	N/A	-2.35%
Solarmax Technology	-5.40%	N/A	-7.25%

Risk and Volatility

INNOVATE has a beta of 2.43, suggesting that its stock price is 143% more volatile than the S&P 500. Comparatively, Solarmax Technology has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500.

Insider & Institutional Ownership

34.3% of INNOVATE shares are owned by institutional investors. 57.7% of INNOVATE shares are owned by insiders. Comparatively, 25.4% of Solarmax Technology shares are owned 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.

Summary

INNOVATE beats Solarmax Technology on 6 of the 10 factors compared between the two stocks.

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.

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.