WallStSmart

Euro Tech Holdings Company Ltd (CLWT)vsEnergy Recovery Inc (ERII)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy Recovery Inc generates 863% more annual revenue ($134.99M vs $14.01M). ERII leads profitability with a 17.0% profit margin vs 4.0%. CLWT trades at a lower P/E of 16.7x. ERII earns a higher WallStSmart Score of 59/100 (C).

CLWT

Avoid

32

out of 100

Grade: F

Growth: 2.0Profit: 3.5Value: 5.7Quality: 5.0

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

CLWTSignificantly Overvalued (-147.9%)

Margin of Safety

-147.9%

Fair Value

$0.48

Current Price

$1.17

$0.69 premium

UndervaluedFair: $0.48Overvalued
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

CLWT2 strengths · Avg: 9.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

P/E RatioValuation
16.7x8/10

Attractively priced relative to earnings

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

CLWT4 concerns · Avg: 2.8/10
Market CapQuality
$8.91M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.9%3/10

ROE of 4.9% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Revenue GrowthGrowth
-18.9%2/10

Revenue declined 18.9%

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 : CLWT

The strongest argument for CLWT centers on Price/Book, P/E Ratio.

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 : CLWT

The primary concerns for CLWT are Market Cap, Return on Equity, Profit Margin. Thin 4.0% margins leave little buffer for downturns.

Bear Case : ERII

The primary concerns for ERII are Market Cap, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

CLWT profiles as a value stock while ERII is a declining play — different risk/reward profiles.

ERII carries more volatility with a beta of 1.10 — expect wider price swings.

ERII is growing revenue faster at -0.3% — sustainability is the question.

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

Bottom Line

ERII scores higher overall (59/100 vs 32/100), backed by strong 17.0% margins. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Euro Tech Holdings Company Ltd

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Euro Tech Holdings Company Limited distributes water treatment equipment, laboratory instruments, analyzers, test kits and related supplies, and power generation equipment to commercial customers and government agencies in Hong Kong and the People's Republic of China. The company is headquartered in Hong Kong, Hong Kong.

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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