Energy Recovery Inc (ERII)vsFederal Signal Corporation (FSS)
ERII
Energy Recovery Inc
$10.17
+0.49%
INDUSTRIALS · Cap: $501.12M
FSS
Federal Signal Corporation
$111.34
-0.81%
INDUSTRIALS · Cap: $6.84B
Smart Verdict
WallStSmart Research — data-driven comparison
Federal Signal Corporation generates 1515% more annual revenue ($2.18B vs $134.99M). ERII leads profitability with a 17.0% profit margin vs 11.3%. FSS appears more attractively valued with a PEG of 1.71. FSS earns a higher WallStSmart Score of 66/100 (B-).
ERII
Buy59
out of 100
Grade: C
FSS
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+5.6%
Fair Value
$16.36
Current Price
$10.17
$6.19 discount
Margin of Safety
+34.7%
Fair Value
$182.54
Current Price
$111.34
$71.20 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 46.5%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Earnings expanding 20.1% YoY
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Revenue surging 26.5% year-over-year
Earnings expanding 24.2% YoY
Areas to Watch
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Revenue declined 0.3%
Expensive relative to growth rate
Moderate valuation
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : FSS
The strongest argument for FSS centers on Altman Z-Score, Debt/Equity, Revenue Growth. Revenue growth of 26.5% demonstrates continued momentum.
Bear Case : ERII
The primary concerns for ERII are Market Cap, Piotroski F-Score, PEG Ratio.
Bear Case : FSS
The primary concerns for FSS are PEG Ratio, P/E Ratio.
Key Dynamics to Monitor
ERII profiles as a declining stock while FSS is a growth play — different risk/reward profiles.
FSS carries more volatility with a beta of 1.33 — expect wider price swings.
FSS is growing revenue faster at 26.5% — sustainability is the question.
FSS generates stronger free cash flow (90M), providing more financial flexibility.
Bottom Line
FSS scores higher overall (66/100 vs 59/100) and 26.5% revenue growth. Both earn "Strong 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.
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.
Federal Signal Corporation
INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA
Federal Signal Corporation designs, manufactures, and supplies a suite of integrated products and solutions for municipal, government, industrial, and commercial customers in the United States, Canada, Europe, and internationally. The company is headquartered in Oak Brook, Illinois.
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