CECO Environmental Corp. (CECO)vsEnergy Recovery Inc (ERII)
CECO
CECO Environmental Corp.
$78.02
-3.80%
INDUSTRIALS · Cap: $2.68B
ERII
Energy Recovery Inc
$8.01
-3.38%
INDUSTRIALS · Cap: $412.88M
Smart Verdict
WallStSmart Research — data-driven comparison
CECO Environmental Corp. generates 488% more annual revenue ($803.60M vs $136.63M). ERII leads profitability with a 15.1% profit margin vs 1.7%. CECO appears more attractively valued with a PEG of 1.44. ERII earns a higher WallStSmart Score of 57/100 (C).
CECO
Hold44
out of 100
Grade: D
ERII
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CECO.
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
Conservative balance sheet, low leverage
16.5% revenue growth
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
Trading at 9.0x book value
Grey zone — moderate risk
ROE of 5.5% — below average capital efficiency
1.7% margin — thin
Smaller company, higher risk/reward
Expensive relative to growth rate
Operating margin of -103.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : CECO
The strongest argument for CECO centers on Debt/Equity, Revenue Growth. Revenue growth of 16.5% demonstrates continued momentum. PEG of 1.44 suggests the stock is reasonably priced for its growth.
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 : CECO
The primary concerns for CECO are Price/Book, Altman Z-Score, Return on Equity. A P/E of 196.7x leaves little room for execution misses. Thin 1.7% margins leave little buffer for downturns.
Bear Case : ERII
The primary concerns for ERII are Market Cap, PEG Ratio, Operating Margin.
Key Dynamics to Monitor
CECO carries more volatility with a beta of 1.52 — 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.
Monitor POLLUTION & TREATMENT CONTROLS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ERII scores higher overall (57/100 vs 44/100), backed by strong 15.1% margins and 20.3% revenue growth. 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.
CECO Environmental Corp.
INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA
CECO Environmental Corporation. The company is headquartered in Dallas, Texas.
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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