WallStSmart

Arq Inc (ARQ)vsEnergy Recovery Inc (ERII)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arq Inc generates 2% more annual revenue ($123.44M vs $120.57M). ERII leads profitability with a 12.7% profit margin vs -42.2%. ERII appears more attractively valued with a PEG of 3.33. ERII earns a higher WallStSmart Score of 45/100 (D+).

ARQ

Hold

39

out of 100

Grade: F

Growth: 4.7Profit: 2.5Value: 5.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.51

ERII

Hold

45

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 4.0Quality: 9.0
Piotroski: 4/9Altman Z: 7.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARQUndervalued (+64.3%)

Margin of Safety

+64.3%

Fair Value

$10.63

Current Price

$2.20

$8.43 discount

UndervaluedFair: $10.63Overvalued
ERIIOvervalued (-10.1%)

Margin of Safety

-10.1%

Fair Value

$14.03

Current Price

$7.55

$6.48 premium

UndervaluedFair: $14.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARQ2 strengths · Avg: 9.5/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

ERII4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.4910/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

Areas to Watch

ARQ4 concerns · Avg: 3.8/10
Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

Market CapQuality
$96.07M3/10

Smaller company, higher risk/reward

ERII4 concerns · Avg: 2.8/10
P/E RatioValuation
29.7x4/10

Moderate valuation

Market CapQuality
$394.58M3/10

Smaller company, higher risk/reward

PEG RatioValuation
3.332/10

Expensive relative to growth rate

Revenue GrowthGrowth
-57.2%2/10

Revenue declined 57.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : ARQ

The strongest argument for ARQ centers on Price/Book, Debt/Equity.

Bull Case : ERII

The strongest argument for ERII centers on Debt/Equity, Altman Z-Score, Price/Book.

Bear Case : ARQ

The primary concerns for ARQ are Revenue Growth, EPS Growth, Altman Z-Score.

Bear Case : ERII

The primary concerns for ERII are P/E Ratio, Market Cap, PEG Ratio.

Key Dynamics to Monitor

ARQ profiles as a turnaround stock while ERII is a declining play — different risk/reward profiles.

ARQ carries more volatility with a beta of 2.86 — expect wider price swings.

ARQ is growing revenue faster at 4.5% — sustainability is the question.

ERII generates stronger free cash flow (15M), providing more financial flexibility.

Bottom Line

ERII scores higher overall (45/100 vs 39/100). ARQ offers better value entry with a 64.3% margin of safety. Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arq Inc

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Arq, Inc. produces activated carbon products in North America. The company is headquartered in Greenwood Village, Colorado.

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Energy Recovery Inc

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Energy Recovery, Inc. designs, manufactures and sells various solutions for the industrial fluid flow markets worldwide. The company is headquartered in San Leandro, California.

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