CECO Environmental Corp. (CECO)vsEnergy Recovery Inc (ERII)
CECO
CECO Environmental Corp.
$62.08
+0.06%
INDUSTRIALS · Cap: $2.21B
ERII
Energy Recovery Inc
$10.17
+0.49%
INDUSTRIALS · Cap: $501.12M
Smart Verdict
WallStSmart Research — data-driven comparison
CECO Environmental Corp. generates 474% more annual revenue ($774.38M vs $134.99M). ERII leads profitability with a 17.0% profit margin vs 6.5%. CECO appears more attractively valued with a PEG of 1.44. ERII earns a higher WallStSmart Score of 59/100 (C).
CECO
Buy54
out of 100
Grade: C-
ERII
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-717.4%
Fair Value
$9.32
Current Price
$62.08
$52.76 premium
Margin of Safety
+5.6%
Fair Value
$16.36
Current Price
$10.17
$6.19 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 35.4% year-over-year
Conservative balance sheet, low leverage
Strong operational efficiency at 46.5%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Earnings expanding 20.1% YoY
Areas to Watch
Grey zone — moderate risk
6.5% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Revenue declined 0.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : CECO
The strongest argument for CECO centers on Revenue Growth, Debt/Equity. Revenue growth of 35.4% 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 Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 17.0% and operating margin at 46.5%.
Bear Case : CECO
The primary concerns for CECO are Altman Z-Score, Profit Margin, Piotroski F-Score. A P/E of 45.3x leaves little room for execution misses.
Bear Case : ERII
The primary concerns for ERII are Market Cap, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
CECO profiles as a hypergrowth stock while ERII is a declining play — different risk/reward profiles.
CECO carries more volatility with a beta of 1.42 — expect wider price swings.
CECO is growing revenue faster at 35.4% — sustainability is the question.
CECO generates stronger free cash flow (7M), providing more financial flexibility.
Bottom Line
ERII scores higher overall (59/100 vs 54/100), backed by strong 17.0% margins. Both earn "Buy" and "Buy" 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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