WallStSmart

Energy Recovery Inc (ERII)vsVeralto Corporation (VLTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Veralto Corporation generates 3994% more annual revenue ($5.59B vs $136.63M). VLTO leads profitability with a 17.3% profit margin vs 15.1%. VLTO appears more attractively valued with a PEG of 2.50. VLTO earns a higher WallStSmart Score of 64/100 (C+).

ERII

Buy

57

out of 100

Grade: C

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

VLTO

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 8.5Value: 5.0Quality: 5.5
Piotroski: 3/9Altman Z: 2.20
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 VLTO.

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

VLTO2 strengths · Avg: 9.0/10
Return on EquityProfitability
32.3%10/10

Every $100 of equity generates 32 in profit

Operating MarginProfitability
23.8%8/10

Strong operational efficiency at 23.8%

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%

VLTO2 concerns · Avg: 3.5/10
PEG RatioValuation
2.504/10

Expensive relative to growth rate

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. Profitability is solid with margins at 15.1% and operating margin at -103.3%. Revenue growth of 20.3% demonstrates continued momentum.

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 23.8%.

Bear Case : ERII

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

Bear Case : VLTO

The primary concerns for VLTO are PEG Ratio, Piotroski F-Score.

Key Dynamics to Monitor

ERII profiles as a growth stock while VLTO is a mature 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.

VLTO generates stronger free cash flow (170M), providing more financial flexibility.

Bottom Line

VLTO scores higher overall (64/100 vs 57/100), backed by strong 17.3% margins. 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.

Veralto Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Veralto Corporation provides water supply services.

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