WallStSmart

Energy Recovery Inc (ERII)vsPACCAR Inc (PCAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PACCAR Inc generates 20479% more annual revenue ($27.78B vs $134.99M). ERII leads profitability with a 17.0% profit margin vs 8.9%. PCAR appears more attractively valued with a PEG of 1.18. ERII earns a higher WallStSmart Score of 57/100 (C).

ERII

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 4.7Quality: 8.5
Piotroski: 2/9Altman Z: 6.13

PCAR

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ERIIUndervalued (+6.4%)

Margin of Safety

+6.4%

Fair Value

$16.50

Current Price

$11.04

$5.46 discount

UndervaluedFair: $16.50Overvalued
PCARSignificantly Overvalued (-24.6%)

Margin of Safety

-24.6%

Fair Value

$103.92

Current Price

$118.80

$14.88 premium

UndervaluedFair: $103.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ERII5 strengths · Avg: 9.2/10
Operating MarginProfitability
46.5%10/10

Strong operational efficiency at 46.5%

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.1310/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

PCAR1 strengths · Avg: 9.0/10
Market CapQuality
$62.52B9/10

Large-cap with strong market position

Areas to Watch

ERII4 concerns · Avg: 3.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Market CapQuality
$583.23M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.332/10

Expensive relative to growth rate

PCAR3 concerns · Avg: 3.0/10
P/E RatioValuation
25.3x4/10

Moderate valuation

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-8.9%2/10

Revenue declined 8.9%

Comparative Analysis Report

WallStSmart Research

Bull 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 : PCAR

The strongest argument for PCAR centers on Market Cap. PEG of 1.18 suggests the stock is reasonably priced for its growth.

Bear Case : ERII

The primary concerns for ERII are P/E Ratio, Market Cap, Piotroski F-Score.

Bear Case : PCAR

The primary concerns for PCAR are P/E Ratio, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

ERII profiles as a declining stock while PCAR is a value play — different risk/reward profiles.

ERII carries more volatility with a beta of 1.08 — expect wider price swings.

ERII is growing revenue faster at -0.3% — sustainability is the question.

PCAR generates stronger free cash flow (654M), providing more financial flexibility.

Bottom Line

ERII scores higher overall (57/100 vs 52/100), backed by strong 17.0% margins. 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.

PACCAR Inc

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

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