WallStSmart

374Water Inc. Common Stock (SCWO)vsZurn Elkay Water Solutions Corporation (ZWS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Zurn Elkay Water Solutions Corporation generates 800743% more annual revenue ($1.79B vs $223,090). ZWS leads profitability with a 15.4% profit margin vs 0.0%. ZWS earns a higher WallStSmart Score of 67/100 (B-).

SCWO

Avoid

15

out of 100

Grade: F

Growth: 3.3Profit: 2.5Value: 5.0Quality: 4.0
Piotroski: 1/9Altman Z: -11.13

ZWS

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.0Quality: 7.5
Piotroski: 5/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for SCWO.

ZWSOvervalued (-5.4%)

Margin of Safety

-5.4%

Fair Value

$48.89

Current Price

$51.02

$2.13 premium

UndervaluedFair: $48.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SCWO0 strengths · Avg: 0/10

No standout strengths identified

ZWS2 strengths · Avg: 10.0/10
Operating MarginProfitability
31.4%10/10

Strong operational efficiency at 31.4%

EPS GrowthGrowth
132.0%10/10

Earnings expanding 132.0% YoY

Areas to Watch

SCWO4 concerns · Avg: 3.8/10
Price/BookValuation
11.0x4/10

Trading at 11.0x book value

Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$37.44M3/10

Smaller company, higher risk/reward

ZWS3 concerns · Avg: 4.0/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

P/E RatioValuation
31.4x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : SCWO

SCWO has a balanced fundamental profile.

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 : SCWO

The primary concerns for SCWO are Price/Book, Revenue Growth, EPS Growth.

Bear Case : ZWS

The primary concerns for ZWS are PEG Ratio, P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

SCWO profiles as a value stock while ZWS is a mature play — different risk/reward profiles.

ZWS carries more volatility with a beta of 0.81 — 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 (67/100 vs 15/100), backed by strong 15.4% margins and 10.5% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

374Water Inc. Common Stock

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

374Water, Inc. is focused on providing technology that addresses the challenges of environmental pollution. The company is headquartered in Durham, North Carolina.

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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