Reviewing Brookfield Business Partners (NYSE:BBU) and SolarMax Technology (NASDAQ:SMXT)

Brookfield Business Partners (NYSE:BBU) and SolarMax Technology (NASDAQ:SMXT) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Brookfield Business Partners and SolarMax Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Business Partners	0	0	6	1	3.14
SolarMax Technology	0	0	0	0	N/A

Brookfield Business Partners presently has a consensus target price of $30.33, indicating a potential upside of 56.04%. Given Brookfield Business Partners’ higher possible upside, research analysts clearly believe Brookfield Business Partners is more favorable than SolarMax Technology.

Institutional and Insider Ownership

85.0% of Brookfield Business Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brookfield Business Partners	7.08%	21.64%	4.41%
SolarMax Technology	N/A	N/A	N/A

Valuation and Earnings

This table compares Brookfield Business Partners and SolarMax Technology’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Business Partners	$55.07 billion	0.03	$482.00 million	$6.38	3.05
SolarMax Technology	$47.03 million	3.79	$440,000.00	N/A	N/A

Brookfield Business Partners has higher revenue and earnings than SolarMax Technology.

Summary

Brookfield Business Partners beats SolarMax Technology on 9 of the 10 factors compared between the two stocks.

About Brookfield Business Partners

Brookfield Business Partners L.P. is a private equity firm specializing in acquisition. The firm typically invests in business services, infrastructure services, construction, energy, and industrials sector. It prefers to take majority stake in companies. The firm seeks returns of at least 15% on its investments. Brookfield Business Partners L.P. was founded in 2016 and is based in Hamilton, Bermuda. Brookfield Business Partners L.P. operates as a subsidiary of Brookfield Corporation.

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.