WallStSmart

Energy Recovery Inc (ERII)vsVeralto Corporation (VLTO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Veralto Corporation generates 4624% more annual revenue ($5.70B vs $120.57M). VLTO leads profitability with a 17.3% profit margin vs 12.7%. ERII appears more attractively valued with a PEG of 3.33. VLTO earns a higher WallStSmart Score of 60/100 (C).

ERII

Hold

45

out of 100

Grade: D+

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

VLTO

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 4.3Quality: 5.5
Piotroski: 3/9Altman Z: 2.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ERIIOvervalued (-11.0%)

Margin of Safety

-11.0%

Fair Value

$13.91

Current Price

$6.95

$6.96 premium

UndervaluedFair: $13.91Overvalued

Intrinsic value data unavailable for VLTO.

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
2.1x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

VLTO2 strengths · Avg: 9.0/10
Return on EquityProfitability
31.9%10/10

Every $100 of equity generates 32 in profit

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

Areas to Watch

ERII4 concerns · Avg: 2.8/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Market CapQuality
$339.45M3/10

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%

VLTO4 concerns · Avg: 3.5/10
P/E RatioValuation
25.4x4/10

Moderate valuation

Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Debt/EquityHealth
1.093/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ERII

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

Bull Case : VLTO

The strongest argument for VLTO centers on Return on Equity, Operating Margin. Profitability is solid with margins at 17.3% and operating margin at 21.4%.

Bear Case : ERII

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

Bear Case : VLTO

The primary concerns for VLTO are P/E Ratio, Price/Book, Debt/Equity.

Key Dynamics to Monitor

ERII profiles as a declining stock while VLTO is a mature play — different risk/reward profiles.

ERII carries more volatility with a beta of 0.91 — expect wider price swings.

VLTO is growing revenue faster at 7.5% — sustainability is the question.

VLTO generates stronger free cash flow (328M), providing more financial flexibility.

Bottom Line

VLTO scores higher overall (60/100 vs 45/100), backed by strong 17.3% margins. Both earn "Buy" and "Hold" 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.

Veralto Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Veralto Corporation provides water supply services.

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