WallStSmart

Energy Recovery Inc (ERII)vsFederal Signal Corporation (FSS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Federal Signal Corporation generates 1692% more annual revenue ($2.45B vs $136.63M). ERII leads profitability with a 15.1% profit margin vs 11.7%. FSS appears more attractively valued with a PEG of 1.92. FSS earns a higher WallStSmart Score of 64/100 (C+).

ERII

Buy

57

out of 100

Grade: C

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

FSS

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 7.5Value: 5.0Quality: 7.5
Piotroski: 3/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ERIIUndervalued (+2.6%)

Margin of Safety

+2.6%

Fair Value

$15.85

Current Price

$9.12

$6.73 discount

UndervaluedFair: $15.85Overvalued

Intrinsic value data unavailable for FSS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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
2.6x8/10

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

FSS3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

EPS GrowthGrowth
20.7%8/10

Earnings expanding 20.7% YoY

Areas to Watch

ERII3 concerns · Avg: 2.0/10
Market CapQuality
$434.01M3/10

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%

FSS3 concerns · Avg: 3.7/10
PEG RatioValuation
1.924/10

Expensive relative to growth rate

P/E RatioValuation
26.9x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : FSS

The strongest argument for FSS centers on Altman Z-Score, Revenue Growth, EPS Growth. Revenue growth of 18.7% demonstrates continued momentum.

Bear Case : ERII

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

Bear Case : FSS

The primary concerns for FSS are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

FSS 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.

FSS generates stronger free cash flow (95M), providing more financial flexibility.

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

Bottom Line

FSS scores higher overall (64/100 vs 57/100) and 18.7% 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.

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 · FARM & HEAVY CONSTRUCTION MACHINERY · 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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