WallStSmart

CECO Environmental Corp. (CECO)vsZurn Elkay Water Solutions Corporation (ZWS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Zurn Elkay Water Solutions Corporation generates 98% more annual revenue ($1.79B vs $903.17M). ZWS leads profitability with a 15.4% profit margin vs -3.4%. CECO appears more attractively valued with a PEG of 1.44. ZWS earns a higher WallStSmart Score of 70/100 (B-).

CECO

Hold

44

out of 100

Grade: D

Growth: 7.3Profit: 3.5Value: 5.3Quality: 6.5
Piotroski: 4/9Altman Z: 1.82

ZWS

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.7Quality: 7.5
Piotroski: 5/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CECO.

ZWSOvervalued (-5.6%)

Margin of Safety

-5.6%

Fair Value

$48.83

Current Price

$46.18

$2.65 premium

UndervaluedFair: $48.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CECO2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
53.7%10/10

Revenue surging 53.7% year-over-year

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

ZWS2 strengths · Avg: 10.0/10
Operating MarginProfitability
31.4%10/10

Strong operational efficiency at 31.4%

EPS GrowthGrowth
132.0%10/10

Earnings expanding 132.0% YoY

Areas to Watch

CECO4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

EPS GrowthGrowth
-41.5%2/10

Earnings declined 41.5%

ZWS3 concerns · Avg: 4.0/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

P/E RatioValuation
29.6x4/10

Moderate valuation

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CECO

The strongest argument for CECO centers on Revenue Growth, Price/Book. Revenue growth of 53.7% demonstrates continued momentum. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bull Case : ZWS

The strongest argument for ZWS centers on Operating Margin, EPS Growth. Profitability is solid with margins at 15.4% and operating margin at 31.4%. Revenue growth of 10.5% demonstrates continued momentum.

Bear Case : CECO

The primary concerns for CECO are Altman Z-Score, Return on Equity, Operating Margin.

Bear Case : ZWS

The primary concerns for ZWS are PEG Ratio, P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

CECO profiles as a hypergrowth stock while ZWS is a mature play — different risk/reward profiles.

CECO carries more volatility with a beta of 1.51 — expect wider price swings.

CECO is growing revenue faster at 53.7% — sustainability is the question.

ZWS generates stronger free cash flow (156M), providing more financial flexibility.

Bottom Line

ZWS scores higher overall (70/100 vs 44/100), backed by strong 15.4% margins and 10.5% revenue growth. Both earn "Strong 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 →

Zurn Elkay Water Solutions Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Zurn Water Solutions Corporation designs, acquires, manufactures, and markets water system solutions that provide and improve water quality, safety, flow control, and conservation in and around non-residential buildings. The company is headquartered in Milwaukee, Wisconsin.

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