Energy Recovery Inc (ERII)vsZurn Elkay Water Solutions Corporation (ZWS)
ERII
Energy Recovery Inc
$7.55
+3.85%
INDUSTRIALS · Cap: $394.58M
ZWS
Zurn Elkay Water Solutions Corporation
$46.18
+1.45%
INDUSTRIALS · Cap: $7.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Zurn Elkay Water Solutions Corporation generates 1382% more annual revenue ($1.79B vs $120.57M). ZWS leads profitability with a 15.4% profit margin vs 12.7%. ZWS appears more attractively valued with a PEG of 1.56. ZWS earns a higher WallStSmart Score of 70/100 (B-).
ERII
Hold45
out of 100
Grade: D+
ZWS
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.1%
Fair Value
$14.03
Current Price
$7.55
$6.48 premium
Margin of Safety
-5.6%
Fair Value
$48.83
Current Price
$46.18
$2.65 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
Earnings expanding 20.1% YoY
Strong operational efficiency at 31.4%
Earnings expanding 132.0% YoY
Areas to Watch
Moderate valuation
Smaller company, higher risk/reward
Expensive relative to growth rate
Revenue declined 57.2%
Expensive relative to growth rate
Moderate valuation
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.
Bull Case : ZWS
The strongest argument for ZWS centers on Operating Margin, EPS Growth. Profitability is solid with margins at 15.4% and operating margin at 31.4%. Revenue growth of 10.5% demonstrates continued momentum.
Bear Case : ERII
The primary concerns for ERII are P/E Ratio, Market Cap, PEG Ratio.
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 declining stock while ZWS is a mature play — different risk/reward profiles.
ERII carries more volatility with a beta of 0.92 — expect wider price swings.
ZWS is growing revenue faster at 10.5% — sustainability is the question.
ZWS generates stronger free cash flow (156M), providing more financial flexibility.
Bottom Line
ZWS scores higher overall (70/100 vs 45/100), backed by strong 15.4% margins and 10.5% revenue growth. Both earn "Strong 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.
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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