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 117% more annual revenue ($1.74B vs $803.60M). ZWS leads profitability with a 12.3% profit margin vs 1.7%. CECO appears more attractively valued with a PEG of 1.44. ZWS earns a higher WallStSmart Score of 59/100 (C).

CECO

Hold

44

out of 100

Grade: D

Growth: 6.7Profit: 5.0Value: 4.3Quality: 6.5
Piotroski: 4/9Altman Z: 1.82

ZWS

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 4.0Quality: 7.5
Piotroski: 5/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CECO.

ZWSOvervalued (-8.6%)

Margin of Safety

-8.6%

Fair Value

$47.48

Current Price

$47.37

$0.11 premium

UndervaluedFair: $47.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CECO2 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
16.5%8/10

16.5% revenue growth

ZWS1 strengths · Avg: 8.0/10
EPS GrowthGrowth
37.2%8/10

Earnings expanding 37.2% YoY

Areas to Watch

CECO4 concerns · Avg: 3.5/10
Price/BookValuation
9.0x4/10

Trading at 9.0x book value

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

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

ZWS3 concerns · Avg: 4.0/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

P/E RatioValuation
39.3x4/10

Premium valuation, high expectations priced in

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 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 : ZWS

The strongest argument for ZWS centers on EPS Growth. Revenue growth of 11.4% 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 : ZWS

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

Key Dynamics to Monitor

CECO profiles as a growth stock while ZWS is a value play — different risk/reward profiles.

CECO carries more volatility with a beta of 1.52 — expect wider price swings.

CECO is growing revenue faster at 16.5% — sustainability is the question.

ZWS generates stronger free cash flow (43M), providing more financial flexibility.

Bottom Line

ZWS scores higher overall (59/100 vs 44/100) and 11.4% 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.

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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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