Energy Recovery Inc (ERII)vsZurn Elkay Water Solutions Corporation (ZWS)
ERII
Energy Recovery Inc
$10.17
+0.49%
INDUSTRIALS · Cap: $501.12M
ZWS
Zurn Elkay Water Solutions Corporation
$46.21
+1.63%
INDUSTRIALS · Cap: $7.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Zurn Elkay Water Solutions Corporation generates 1156% more annual revenue ($1.70B vs $134.99M). ERII leads profitability with a 17.0% profit margin vs 11.7%. ZWS appears more attractively valued with a PEG of 1.68. ERII earns a higher WallStSmart Score of 59/100 (C).
ERII
Buy59
out of 100
Grade: C
ZWS
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+5.6%
Fair Value
$16.36
Current Price
$10.17
$6.19 discount
Margin of Safety
-51.8%
Fair Value
$33.96
Current Price
$46.21
$12.25 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 46.5%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Earnings expanding 20.1% YoY
No standout strengths identified
Areas to Watch
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Revenue declined 0.3%
Expensive relative to growth rate
Distress zone — elevated risk
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ERII
The strongest argument for ERII centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 17.0% and operating margin at 46.5%.
Bull Case : ZWS
ZWS has a balanced fundamental profile.
Bear Case : ERII
The primary concerns for ERII are Market Cap, Piotroski F-Score, PEG Ratio.
Bear Case : ZWS
The primary concerns for ZWS are PEG Ratio, Altman Z-Score, P/E Ratio. A P/E of 40.6x leaves little room for execution misses.
Key Dynamics to Monitor
ERII profiles as a declining stock while ZWS is a value play — different risk/reward profiles.
ERII carries more volatility with a beta of 1.10 — expect wider price swings.
ZWS is growing revenue faster at 9.8% — sustainability is the question.
ZWS generates stronger free cash flow (83M), providing more financial flexibility.
Bottom Line
ERII scores higher overall (59/100 vs 56/100), backed by strong 17.0% 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.
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.
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