WallStSmart

Energy Recovery Inc (ERII)vsPurecycle Technologies Holdings Corp (PCT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy Recovery Inc generates 776% more annual revenue ($120.57M vs $13.76M). ERII leads profitability with a 12.7% profit margin vs 0.0%. ERII earns a higher WallStSmart Score of 45/100 (D+).

ERII

Hold

45

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 4.0Quality: 9.0
Piotroski: 4/9Altman Z: 7.49

PCT

Avoid

30

out of 100

Grade: F

Growth: 6.3Profit: 2.5Value: 5.0Quality: 5.0
Piotroski: 5/9Altman Z: -1.47
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ERIIOvervalued (-10.1%)

Margin of Safety

-10.1%

Fair Value

$14.03

Current Price

$7.55

$6.48 premium

UndervaluedFair: $14.03Overvalued

Intrinsic value data unavailable for PCT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ERII4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.4910/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

PCT1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
173.5%10/10

Revenue surging 173.5% year-over-year

Areas to Watch

ERII4 concerns · Avg: 2.8/10
P/E RatioValuation
29.7x4/10

Moderate valuation

Market CapQuality
$394.58M3/10

Smaller company, higher risk/reward

PEG RatioValuation
3.332/10

Expensive relative to growth rate

Revenue GrowthGrowth
-57.2%2/10

Revenue declined 57.2%

PCT4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.26B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Debt/EquityHealth
1.523/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ERII

The strongest argument for ERII centers on Debt/Equity, Altman Z-Score, Price/Book.

Bull Case : PCT

The strongest argument for PCT centers on Revenue Growth. Revenue growth of 173.5% demonstrates continued momentum.

Bear Case : ERII

The primary concerns for ERII are P/E Ratio, Market Cap, PEG Ratio.

Bear Case : PCT

The primary concerns for PCT are EPS Growth, Market Cap, Profit Margin. Debt-to-equity of 1.52 is elevated, increasing financial risk.

Key Dynamics to Monitor

ERII profiles as a declining stock while PCT is a hypergrowth play — different risk/reward profiles.

PCT carries more volatility with a beta of 2.58 — expect wider price swings.

PCT is growing revenue faster at 173.5% — sustainability is the question.

ERII generates stronger free cash flow (15M), providing more financial flexibility.

Bottom Line

ERII scores higher overall (45/100 vs 30/100). Both earn "Hold" 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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