WallStSmart

Energy Recovery Inc (ERII)vs374Water Inc. Common Stock (SCWO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Energy Recovery Inc generates 6279% more annual revenue ($120.57M vs $1.89M). 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

SCWO

Avoid

23

out of 100

Grade: F

Growth: 5.3Profit: 2.5Value: 5.0Quality: 3.5
Piotroski: 1/9Altman Z: -11.13
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ERIIOvervalued (-10.3%)

Margin of Safety

-10.3%

Fair Value

$14.00

Current Price

$6.81

$7.19 premium

UndervaluedFair: $14.00Overvalued

Intrinsic value data unavailable for SCWO.

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
2.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

SCWO1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
280.2%10/10

Revenue surging 280.2% year-over-year

Areas to Watch

ERII4 concerns · Avg: 2.8/10
P/E RatioValuation
26.2x4/10

Moderate valuation

Market CapQuality
$347.62M3/10

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%

SCWO4 concerns · Avg: 3.5/10
Price/BookValuation
17.7x4/10

Trading at 17.7x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$55.46M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : ERII

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

Bull Case : SCWO

The strongest argument for SCWO centers on Revenue Growth. Revenue growth of 280.2% demonstrates continued momentum.

Bear Case : ERII

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

Bear Case : SCWO

The primary concerns for SCWO are Price/Book, EPS Growth, Market Cap.

Key Dynamics to Monitor

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

ERII carries more volatility with a beta of 0.90 — expect wider price swings.

SCWO is growing revenue faster at 280.2% — sustainability is the question.

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

Bottom Line

ERII scores higher overall (45/100 vs 23/100). 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.

374Water Inc. Common Stock

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

374Water, Inc. is focused on providing technology that addresses the challenges of environmental pollution. The company is headquartered in Durham, North Carolina.

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