WallStSmart

Energy Recovery Inc (ERII)vsLiqTech International Inc (LIQT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy Recovery Inc generates 753% more annual revenue ($136.63M vs $16.03M). ERII leads profitability with a 15.1% profit margin vs -55.4%. LIQT appears more attractively valued with a PEG of 0.80. ERII earns a higher WallStSmart Score of 57/100 (C).

ERII

Buy

57

out of 100

Grade: C

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

LIQT

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 2.0Value: 7.0Quality: 5.0
Piotroski: 4/9Altman Z: -4.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ERIIUndervalued (+3.4%)

Margin of Safety

+3.4%

Fair Value

$15.98

Current Price

$8.01

$7.97 discount

UndervaluedFair: $15.98Overvalued
LIQTUndervalued (+23.2%)

Margin of Safety

+23.2%

Fair Value

$2.11

Current Price

$1.07

$1.04 discount

UndervaluedFair: $2.11Overvalued

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
2.3x8/10

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

LIQT3 strengths · Avg: 9.3/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
459.2%10/10

Earnings expanding 459.2% YoY

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Areas to Watch

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%

LIQT4 concerns · Avg: 2.5/10
Market CapQuality
$8.88M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.693/10

Elevated debt levels

Return on EquityProfitability
-79.3%2/10

ROE of -79.3% — below average capital efficiency

Revenue GrowthGrowth
-10.4%2/10

Revenue declined 10.4%

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 : LIQT

The strongest argument for LIQT centers on Price/Book, EPS Growth, PEG Ratio. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bear Case : ERII

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

Bear Case : LIQT

The primary concerns for LIQT are Market Cap, Debt/Equity, Return on Equity. Debt-to-equity of 1.69 is elevated, increasing financial risk.

Key Dynamics to Monitor

ERII profiles as a growth stock while LIQT is a turnaround play — different risk/reward profiles.

LIQT carries more volatility with a beta of 1.01 — 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 49/100), backed by strong 15.1% margins and 20.3% revenue growth. LIQT offers better value entry with a 23.2% 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.

LiqTech International Inc

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

LiqTech International, Inc., a cleantech company, designs, develops, produces, markets and sells automated filtration systems and applications of ceramic silicon carbide liquid and diesel particulate air filters in the United States, Canada, Europe, Asia and South America. . The company is headquartered in Ballerup, Denmark.

Want to dig deeper into these stocks?