Energy Recovery Inc (ERII)vsZurn Elkay Water Solutions Corporation (ZWS)
ERII
Energy Recovery Inc
$8.01
-3.38%
INDUSTRIALS · Cap: $412.88M
ZWS
Zurn Elkay Water Solutions Corporation
$47.37
-0.17%
INDUSTRIALS · Cap: $8.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Zurn Elkay Water Solutions Corporation generates 1174% more annual revenue ($1.74B vs $136.63M). ERII leads profitability with a 15.1% profit margin vs 12.3%. ZWS appears more attractively valued with a PEG of 1.70. ZWS earns a higher WallStSmart Score of 59/100 (C).
ERII
Buy57
out of 100
Grade: C
ZWS
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+3.4%
Fair Value
$15.98
Current Price
$8.01
$7.97 discount
Margin of Safety
-8.6%
Fair Value
$47.48
Current Price
$47.37
$0.11 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 20.3% year-over-year
Earnings expanding 20.1% YoY
Earnings expanding 37.2% YoY
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
Operating margin of -103.3%
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 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 : ZWS
The strongest argument for ZWS centers on EPS Growth. Revenue growth of 11.4% demonstrates continued momentum.
Bear Case : ERII
The primary concerns for ERII are Market Cap, PEG Ratio, Operating Margin.
Bear Case : ZWS
The primary concerns for ZWS are PEG Ratio, P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
ERII profiles as a growth stock while ZWS 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.
ZWS generates stronger free cash flow (43M), providing more financial flexibility.
Bottom Line
ZWS scores higher overall (59/100 vs 57/100) and 11.4% revenue growth. 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.
Zurn Elkay Water Solutions Corporation
INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA
Zurn Water Solutions Corporation designs, acquires, manufactures, and markets water system solutions that provide and improve water quality, safety, flow control, and conservation in and around non-residential buildings. The company is headquartered in Milwaukee, Wisconsin.
Compare with Other POLLUTION & TREATMENT CONTROLS Stocks
Want to dig deeper into these stocks?