Energy Recovery Inc (ERII)vsFuel Tech Inc (FTEK)
ERII
Energy Recovery Inc
$8.01
-3.38%
INDUSTRIALS · Cap: $412.88M
FTEK
Fuel Tech Inc
$1.44
-2.04%
INDUSTRIALS · Cap: $42.38M
Smart Verdict
WallStSmart Research — data-driven comparison
Energy Recovery Inc generates 418% more annual revenue ($136.63M vs $26.38M). ERII leads profitability with a 15.1% profit margin vs -11.2%. FTEK appears more attractively valued with a PEG of 2.33. ERII earns a higher WallStSmart Score of 57/100 (C).
ERII
Buy57
out of 100
Grade: C
FTEK
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+3.4%
Fair Value
$15.98
Current Price
$8.01
$7.97 discount
Margin of Safety
+39.3%
Fair Value
$2.19
Current Price
$1.44
$0.75 discount
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
Reasonable price relative to book value
Earnings expanding 276.0% YoY
Conservative balance sheet, low leverage
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
Operating margin of -103.3%
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of -7.3% — below average capital efficiency
Revenue declined 4.7%
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 : FTEK
The strongest argument for FTEK centers on Price/Book, EPS Growth, Debt/Equity.
Bear Case : ERII
The primary concerns for ERII are Market Cap, PEG Ratio, Operating Margin.
Bear Case : FTEK
The primary concerns for FTEK are PEG Ratio, Market Cap, Return on Equity.
Key Dynamics to Monitor
ERII profiles as a growth stock while FTEK is a turnaround play — different risk/reward profiles.
FTEK carries more volatility with a beta of 1.33 — 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 39/100), backed by strong 15.1% margins and 20.3% revenue growth. FTEK offers better value entry with a 39.3% margin of safety. Both earn "Buy" 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.
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.
Fuel Tech Inc
INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA
Fuel Tech, Inc. provides boiler optimization, efficiency improvement, and air pollution control and reduction solutions to industrial and utility customers around the world. The company is headquartered in Warrenville, Illinois.
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