Arq Inc (ARQ)vsEnergy Recovery Inc (ERII)
ARQ
Arq Inc
$2.20
-1.35%
INDUSTRIALS · Cap: $96.07M
ERII
Energy Recovery Inc
$7.55
+3.85%
INDUSTRIALS · Cap: $394.58M
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
Hold39
out of 100
Grade: F
ERII
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+64.3%
Fair Value
$10.63
Current Price
$2.20
$8.43 discount
Margin of Safety
-10.1%
Fair Value
$14.03
Current Price
$7.55
$6.48 premium
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
Earnings expanding 20.1% YoY
Areas to Watch
4.5% revenue growth
0.0% earnings growth
Distress zone — elevated risk
Smaller company, higher risk/reward
Moderate valuation
Smaller company, higher risk/reward
Expensive relative to growth rate
Revenue declined 57.2%
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.
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.
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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