WallStSmart

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

VS

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

Buy

57

out of 100

Grade: C

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

PCT

Avoid

32

out of 100

Grade: F

Growth: 6.3Profit: 2.5Value: 5.0Quality: 4.0
Piotroski: 5/9Altman Z: -1.47
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

Intrinsic value data unavailable for PCT.

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

PCT1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
161.2%10/10

Revenue surging 161.2% year-over-year

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%

PCT4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Price/BookValuation
312.9x2/10

Trading at 312.9x book value

Return on EquityProfitability
-80.9%2/10

ROE of -80.9% — below average capital efficiency

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 : 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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