Energy Recovery Inc (ERII)vsFederal Signal Corporation (FSS)
ERII
Energy Recovery Inc
$9.12
+2.36%
INDUSTRIALS · Cap: $434.01M
FSS
Federal Signal Corporation
$132.51
+2.63%
INDUSTRIALS · Cap: $7.63B
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
Buy57
out of 100
Grade: C
FSS
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+2.6%
Fair Value
$15.85
Current Price
$9.12
$6.73 discount
Intrinsic value data unavailable for FSS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 20.3% year-over-year
Earnings expanding 20.1% YoY
Safe zone — low bankruptcy risk
18.7% revenue growth
Earnings expanding 20.7% YoY
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
Operating margin of -103.3%
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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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