Energy Recovery Inc (ERII)vsPurecycle Technologies Holdings Corp (PCT)
ERII
Energy Recovery Inc
$8.01
-3.38%
INDUSTRIALS · Cap: $412.88M
PCT
Purecycle Technologies Holdings Corp
$12.52
-10.29%
INDUSTRIALS · Cap: $2.24B
Smart Verdict
WallStSmart Research — data-driven comparison
Energy Recovery Inc generates 1153% more annual revenue ($136.63M vs $10.90M). ERII leads profitability with a 15.1% profit margin vs 0.0%. ERII earns a higher WallStSmart Score of 57/100 (C).
ERII
Buy57
out of 100
Grade: C
PCT
Avoid32
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
Intrinsic value data unavailable for PCT.
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
Revenue surging 161.2% year-over-year
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
Operating margin of -103.3%
0.0% earnings growth
0.0% margin — thin
Trading at 312.9x book value
ROE of -80.9% — below average capital efficiency
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 : PCT
The strongest argument for PCT centers on Revenue Growth. Revenue growth of 161.2% demonstrates continued momentum.
Bear Case : ERII
The primary concerns for ERII are Market Cap, PEG Ratio, Operating Margin.
Bear Case : PCT
The primary concerns for PCT are EPS Growth, Profit Margin, Price/Book. Debt-to-equity of 99.53 is elevated, increasing financial risk.
Key Dynamics to Monitor
ERII profiles as a growth stock while PCT is a hypergrowth play — different risk/reward profiles.
PCT carries more volatility with a beta of 2.31 — expect wider price swings.
PCT is growing revenue faster at 161.2% — sustainability is the question.
ERII generates stronger free cash flow (20M), providing more financial flexibility.
Bottom Line
ERII scores higher overall (57/100 vs 32/100), backed by strong 15.1% margins and 20.3% revenue growth. Both earn "Buy" and "Avoid" 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.
Purecycle Technologies Holdings Corp
INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA
PureCycle Technologies, Inc. produces recycled polypropylene (PP). The company is headquartered in Orlando, Florida.
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