Arq Inc (ARQ)vsEnergy Recovery Inc (ERII)
ARQ
Arq Inc
$2.60
-2.26%
INDUSTRIALS · Cap: $111.61M
ERII
Energy Recovery Inc
$8.01
-3.38%
INDUSTRIALS · Cap: $412.88M
Smart Verdict
WallStSmart Research — data-driven comparison
Energy Recovery Inc generates 12% more annual revenue ($136.63M vs $122.14M). ERII leads profitability with a 15.1% profit margin vs -43.9%. ERII appears more attractively valued with a PEG of 3.33. ERII earns a higher WallStSmart Score of 57/100 (C).
ARQ
Hold40
out of 100
Grade: F
ERII
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+66.2%
Fair Value
$11.25
Current Price
$2.60
$8.65 discount
Margin of Safety
+3.4%
Fair Value
$15.98
Current Price
$8.01
$7.97 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 20.3% year-over-year
Earnings expanding 20.1% YoY
Areas to Watch
0.0% earnings growth
Distress zone — elevated risk
Smaller company, higher risk/reward
Weak financial health signals
Smaller company, higher risk/reward
Expensive relative to growth rate
Operating margin of -103.3%
Comparative Analysis Report
WallStSmart ResearchBull 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. Profitability is solid with margins at 15.1% and operating margin at -103.3%. Revenue growth of 20.3% demonstrates continued momentum.
Bear Case : ARQ
The primary concerns for ARQ are EPS Growth, Altman Z-Score, Market Cap.
Bear Case : ERII
The primary concerns for ERII are Market Cap, PEG Ratio, Operating Margin.
Key Dynamics to Monitor
ARQ profiles as a turnaround stock while ERII is a growth play — different risk/reward profiles.
ARQ carries more volatility with a beta of 2.70 — expect wider price swings.
ERII is growing revenue faster at 20.3% — sustainability is the question.
ERII generates stronger free cash flow (20M), providing more financial flexibility.
Bottom Line
ERII scores higher overall (57/100 vs 40/100), backed by strong 15.1% margins and 20.3% revenue growth. ARQ offers better value entry with a 66.2% margin of safety. Both earn "Buy" 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.
Visit Website →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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