Energy Recovery Inc (ERII)vsRaytheon Technologies Corp (RTX)
ERII
Energy Recovery Inc
$10.70
-3.52%
INDUSTRIALS · Cap: $595.91M
RTX
Raytheon Technologies Corp
$176.07
+1.90%
INDUSTRIALS · Cap: $237.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Raytheon Technologies Corp generates 66849% more annual revenue ($90.37B vs $134.99M). ERII leads profitability with a 17.0% profit margin vs 8.0%. RTX appears more attractively valued with a PEG of 2.39. RTX earns a higher WallStSmart Score of 59/100 (C).
ERII
Buy57
out of 100
Grade: C
RTX
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+6.4%
Fair Value
$16.50
Current Price
$10.70
$5.80 discount
Margin of Safety
-52.1%
Fair Value
$115.75
Current Price
$176.07
$60.32 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 46.5%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Earnings expanding 20.1% YoY
Mega-cap, among the largest globally
Earnings expanding 32.5% YoY
Generating 1.2B in free cash flow
Areas to Watch
Moderate valuation
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : RTX
The strongest argument for RTX centers on Market Cap, EPS Growth, Free Cash Flow.
Bear Case : ERII
The primary concerns for ERII are P/E Ratio, Market Cap, Piotroski F-Score.
Bear Case : RTX
The primary concerns for RTX are PEG Ratio, P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
ERII profiles as a declining stock while RTX is a value play — different risk/reward profiles.
ERII carries more volatility with a beta of 1.08 — expect wider price swings.
RTX is growing revenue faster at 8.7% — sustainability is the question.
RTX generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
RTX scores higher overall (59/100 vs 57/100). 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.
Raytheon Technologies Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.
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