WallStSmart

CNH Industrial N.V. (CNH)vsEnergy Recovery Inc (ERII)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CNH Industrial N.V. generates 13143% more annual revenue ($18.09B vs $136.63M). ERII leads profitability with a 15.1% profit margin vs 2.1%. CNH appears more attractively valued with a PEG of 0.61. ERII earns a higher WallStSmart Score of 57/100 (C).

CNH

Buy

51

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 5.7Quality: 5.5
Piotroski: 3/9Altman Z: 1.89

ERII

Buy

57

out of 100

Grade: C

Growth: 6.7Profit: 5.5Value: 4.7Quality: 9.0
Piotroski: 4/9Altman Z: 7.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CNH.

ERIIUndervalued (+3.4%)

Margin of Safety

+3.4%

Fair Value

$15.98

Current Price

$8.01

$7.97 discount

UndervaluedFair: $15.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNH2 strengths · Avg: 8.0/10
PEG RatioValuation
0.618/10

Growing faster than its price suggests

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

ERII5 strengths · Avg: 8.8/10
Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.4910/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.3%8/10

Revenue surging 20.3% year-over-year

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

Areas to Watch

CNH4 concerns · Avg: 3.5/10
P/E RatioValuation
33.6x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.894/10

Grey zone — moderate risk

Return on EquityProfitability
5.0%3/10

ROE of 5.0% — below average capital efficiency

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

ERII3 concerns · Avg: 2.0/10
Market CapQuality
$412.88M3/10

Smaller company, higher risk/reward

PEG RatioValuation
3.332/10

Expensive relative to growth rate

Operating MarginProfitability
-103.3%1/10

Operating margin of -103.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : CNH

The strongest argument for CNH centers on PEG Ratio, Price/Book. PEG of 0.61 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. Profitability is solid with margins at 15.1% and operating margin at -103.3%. Revenue growth of 20.3% demonstrates continued momentum.

Bear Case : CNH

The primary concerns for CNH are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 3.37 is elevated, increasing financial risk. Thin 2.1% margins leave little buffer for downturns.

Bear Case : ERII

The primary concerns for ERII are Market Cap, PEG Ratio, Operating Margin.

Key Dynamics to Monitor

CNH profiles as a value stock while ERII is a growth play — different risk/reward profiles.

CNH carries more volatility with a beta of 1.23 — expect wider price swings.

ERII is growing revenue faster at 20.3% — sustainability is the question.

ERII generates stronger free cash flow (20M), providing more financial flexibility.

Bottom Line

ERII scores higher overall (57/100 vs 51/100), backed by strong 15.1% margins and 20.3% revenue growth. 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.

CNH Industrial N.V.

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

CNH Industrial N.V., an equipment and services company, engages in the design, production, marketing, sale, and financing of agricultural and construction equipment in North America, Europe, the Middle East, Africa, South America, and the Asia Pacific. The company is headquartered in Basildon, the United Kingdom.

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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