WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy Recovery Inc generates 61143% more annual revenue ($136.63M vs $223,090). 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

SCWO

Avoid

15

out of 100

Grade: F

Growth: 3.3Profit: 2.5Value: 5.0Quality: 4.0
Piotroski: 1/9Altman Z: -11.13
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 SCWO.

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

SCWO0 strengths · Avg: 0/10

No standout strengths identified

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%

SCWO4 concerns · Avg: 3.8/10
Price/BookValuation
11.8x4/10

Trading at 11.8x book value

Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$42.86M3/10

Smaller company, higher risk/reward

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 : SCWO

SCWO has a balanced fundamental profile.

Bear Case : ERII

The primary concerns for ERII are Market Cap, PEG Ratio, Operating Margin.

Bear Case : SCWO

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

Key Dynamics to Monitor

ERII profiles as a growth stock while SCWO is a value play — different risk/reward profiles.

ERII carries more volatility with a beta of 0.92 — expect wider price swings.

ERII is growing revenue faster at 20.3% — sustainability is the question.

ERII generates stronger free cash flow (20M), providing more financial flexibility.

Bottom Line

ERII scores higher overall (57/100 vs 15/100), 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.

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.

Want to dig deeper into these stocks?