Argan (NYSE:AGX) vs. SolarMax Technology (NASDAQ:SMXT) Head-To-Head Analysis

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

Institutional & Insider Ownership

79.4% of Argan shares are held by institutional investors. 11.9% of Argan shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Argan	5.64%	11.37%	6.04%
SolarMax Technology	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Argan and SolarMax Technology, as reported by MarketBeat.com.

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

Argan currently has a consensus target price of $70.00, indicating a potential upside of 7.68%. Given Argan’s higher probable upside, analysts plainly believe Argan is more favorable than SolarMax Technology.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argan	$573.33 million	1.50	$32.36 million	$2.39	27.20
SolarMax Technology	$54.14 million	8.64	N/A	N/A	N/A

Argan has higher revenue and earnings than SolarMax Technology.

Summary

Argan beats SolarMax Technology on 8 of the 9 factors compared between the two stocks.

About Argan

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market. The company operates through Power Services, Industrial Services, and Telecom Services segments. The Power Services segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for projects with approximately 18 gigawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and other commercial firms. The Industrial Services segment provides industrial construction and field services and vessel fabrication services for fertilizer, engineering and construction, forest products, and various other industrial companies in southeast region of the United States. The Telecom Services segment offers trenchless directional boring and excavation for underground communication and power networks, as well as aerial cabling services; and installs buried cable, high and low voltage electric lines, and private area outdoor lighting systems. It also provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks. This segment serves electricity cooperative, state and local government agencies, counties and municipalities, and technology-oriented government contracting firms, as well as federal government facilities in the mid-Atlantic region of the United States. Argan, Inc. was incorporated in 1961 and is headquartered in Rockville, Maryland.

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.