WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Zurn Elkay Water Solutions Corporation generates 1347% more annual revenue ($1.79B vs $123.44M). ZWS leads profitability with a 15.4% profit margin vs -42.2%. ZWS appears more attractively valued with a PEG of 1.56. ZWS earns a higher WallStSmart Score of 70/100 (B-).

ARQ

Hold

39

out of 100

Grade: F

Growth: 4.7Profit: 2.5Value: 5.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.51

ZWS

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.7Quality: 7.5
Piotroski: 5/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARQUndervalued (+64.3%)

Margin of Safety

+64.3%

Fair Value

$10.63

Current Price

$2.20

$8.43 discount

UndervaluedFair: $10.63Overvalued
ZWSOvervalued (-5.6%)

Margin of Safety

-5.6%

Fair Value

$48.83

Current Price

$46.18

$2.65 premium

UndervaluedFair: $48.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARQ2 strengths · Avg: 9.5/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

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

ARQ4 concerns · Avg: 3.8/10
Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

Market CapQuality
$96.07M3/10

Smaller company, higher risk/reward

ZWS3 concerns · Avg: 4.0/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

P/E RatioValuation
29.6x4/10

Moderate valuation

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 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 : ARQ

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

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 mature play — different risk/reward profiles.

ARQ carries more volatility with a beta of 2.86 — 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 39/100), backed by strong 15.4% margins and 10.5% revenue growth. ARQ offers better value entry with a 64.3% margin of safety. 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.

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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