WallStSmart

Arq Inc (ARQ)vsZurn Elkay Water Solutions Corporation (ZWS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Zurn Elkay Water Solutions Corporation generates 1325% more annual revenue ($1.74B vs $122.14M). ZWS leads profitability with a 12.3% profit margin vs -43.9%. ZWS appears more attractively valued with a PEG of 1.70. ZWS earns a higher WallStSmart Score of 59/100 (C).

ARQ

Hold

40

out of 100

Grade: F

Growth: 5.3Profit: 2.0Value: 5.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.51

ZWS

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 4.0Quality: 7.5
Piotroski: 5/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARQUndervalued (+66.2%)

Margin of Safety

+66.2%

Fair Value

$11.25

Current Price

$2.60

$8.65 discount

UndervaluedFair: $11.25Overvalued
ZWSOvervalued (-8.6%)

Margin of Safety

-8.6%

Fair Value

$47.48

Current Price

$47.37

$0.11 premium

UndervaluedFair: $47.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARQ2 strengths · Avg: 9.5/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.239/10

Conservative balance sheet, low leverage

ZWS1 strengths · Avg: 8.0/10
EPS GrowthGrowth
37.2%8/10

Earnings expanding 37.2% YoY

Areas to Watch

ARQ4 concerns · Avg: 3.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

Market CapQuality
$111.61M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

ZWS3 concerns · Avg: 4.0/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

P/E RatioValuation
39.3x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ARQ

The strongest argument for ARQ centers on Price/Book, Debt/Equity.

Bull Case : ZWS

The strongest argument for ZWS centers on EPS Growth. Revenue growth of 11.4% demonstrates continued momentum.

Bear Case : ARQ

The primary concerns for ARQ are EPS Growth, Altman Z-Score, Market Cap.

Bear Case : ZWS

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

Key Dynamics to Monitor

ARQ profiles as a turnaround stock while ZWS is a value play — different risk/reward profiles.

ARQ carries more volatility with a beta of 2.70 — expect wider price swings.

ZWS is growing revenue faster at 11.4% — sustainability is the question.

ZWS generates stronger free cash flow (43M), providing more financial flexibility.

Bottom Line

ZWS scores higher overall (59/100 vs 40/100) and 11.4% revenue growth. ARQ offers better value entry with a 66.2% margin of safety. Both earn "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.

Arq Inc

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Arq, Inc. produces activated carbon products in North America. The company is headquartered in Greenwood Village, Colorado.

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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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