WallStSmart

Arq Inc (ARQ)vsEnergy Recovery Inc (ERII)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy Recovery Inc generates 12% more annual revenue ($134.99M vs $120.34M). ERII leads profitability with a 17.0% profit margin vs -43.7%. ERII appears more attractively valued with a PEG of 3.33. ERII earns a higher WallStSmart Score of 59/100 (C).

ARQ

Hold

40

out of 100

Grade: F

Growth: 5.3Profit: 2.0Value: 4.0Quality: 6.5
Piotroski: 2/9Altman Z: 2.63

ERII

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 6.0Quality: 8.5
Piotroski: 2/9Altman Z: 6.13
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ARQ.

ERIIUndervalued (+5.6%)

Margin of Safety

+5.6%

Fair Value

$16.36

Current Price

$10.17

$6.19 discount

UndervaluedFair: $16.36Overvalued

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
0.169/10

Conservative balance sheet, low leverage

ERII5 strengths · Avg: 9.2/10
Operating MarginProfitability
46.5%10/10

Strong operational efficiency at 46.5%

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.1310/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

Areas to Watch

ARQ4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$85.27M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
11.752/10

Expensive relative to growth rate

ERII4 concerns · Avg: 2.5/10
Market CapQuality
$501.12M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.332/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.3%2/10

Revenue declined 0.3%

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 Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 17.0% and operating margin at 46.5%.

Bear Case : ARQ

The primary concerns for ARQ are EPS Growth, Market Cap, Piotroski F-Score.

Bear Case : ERII

The primary concerns for ERII are Market Cap, Piotroski F-Score, 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 3.38 — expect wider price swings.

ARQ is growing revenue faster at 8.8% — sustainability is the question.

ERII generates stronger free cash flow (6M), providing more financial flexibility.

Bottom Line

ERII scores higher overall (59/100 vs 40/100), backed by strong 17.0% margins. 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.

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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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