WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy Recovery Inc generates 809% more annual revenue ($120.57M vs $13.27M). ERII leads profitability with a 12.7% profit margin vs 1.2%. CLWT appears more attractively valued with a PEG of 0.57. ERII earns a higher WallStSmart Score of 45/100 (D+).

CLWT

Hold

43

out of 100

Grade: D

Growth: 2.0Profit: 3.5Value: 6.0Quality: 8.0
Piotroski: 2/9Altman Z: 3.32

ERII

Hold

45

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 4.0Quality: 9.0
Piotroski: 4/9Altman Z: 7.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CLWTUndervalued (+15.6%)

Margin of Safety

+15.6%

Fair Value

$1.41

Current Price

$1.54

$0.13 discount

UndervaluedFair: $1.41Overvalued
ERIIOvervalued (-10.3%)

Margin of Safety

-10.3%

Fair Value

$14.00

Current Price

$6.99

$7.01 premium

UndervaluedFair: $14.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CLWT4 strengths · Avg: 9.5/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.3210/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.578/10

Growing faster than its price suggests

ERII4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.4910/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

Areas to Watch

CLWT4 concerns · Avg: 3.0/10
Market CapQuality
$11.71M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

ERII4 concerns · Avg: 2.8/10
P/E RatioValuation
29.0x4/10

Moderate valuation

Market CapQuality
$385.39M3/10

Smaller company, higher risk/reward

PEG RatioValuation
3.332/10

Expensive relative to growth rate

Revenue GrowthGrowth
-57.2%2/10

Revenue declined 57.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : CLWT

The strongest argument for CLWT centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 0.57 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.

Bear Case : CLWT

The primary concerns for CLWT are Market Cap, Return on Equity, Profit Margin. A P/E of 79.0x leaves little room for execution misses. Thin 1.2% margins leave little buffer for downturns.

Bear Case : ERII

The primary concerns for ERII are P/E Ratio, Market Cap, 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 0.90 — expect wider price swings.

CLWT is growing revenue faster at -9.2% — sustainability is the question.

Monitor POLLUTION & TREATMENT CONTROLS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ERII scores higher overall (45/100 vs 43/100). CLWT offers better value entry with a 15.6% margin of safety. Both earn "Hold" 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.

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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