WallStSmart

CECO Environmental Corp. (CECO)vsZurn Elkay Water Solutions Corporation (ZWS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Zurn Elkay Water Solutions Corporation generates 119% more annual revenue ($1.70B vs $774.38M). ZWS leads profitability with a 11.7% profit margin vs 6.5%. CECO appears more attractively valued with a PEG of 1.44. ZWS earns a higher WallStSmart Score of 56/100 (C).

CECO

Buy

54

out of 100

Grade: C-

Growth: 7.3Profit: 6.0Value: 7.3Quality: 6.0
Piotroski: 3/9Altman Z: 1.92

ZWS

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 7.3Quality: 6.8
Piotroski: 5/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CECOSignificantly Overvalued (-717.4%)

Margin of Safety

-717.4%

Fair Value

$9.32

Current Price

$62.08

$52.76 premium

UndervaluedFair: $9.32Overvalued
ZWSSignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$33.96

Current Price

$46.21

$12.25 premium

UndervaluedFair: $33.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CECO2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
35.4%10/10

Revenue surging 35.4% year-over-year

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

ZWS0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

CECO4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.924/10

Grey zone — moderate risk

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.3x2/10

Premium valuation, high expectations priced in

ZWS3 concerns · Avg: 3.3/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

P/E RatioValuation
40.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CECO

The strongest argument for CECO centers on Revenue Growth, Debt/Equity. Revenue growth of 35.4% demonstrates continued momentum. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bull Case : ZWS

ZWS has a balanced fundamental profile.

Bear Case : CECO

The primary concerns for CECO are Altman Z-Score, Profit Margin, Piotroski F-Score. A P/E of 45.3x leaves little room for execution misses.

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

CECO profiles as a hypergrowth stock while ZWS is a value play — different risk/reward profiles.

CECO carries more volatility with a beta of 1.42 — expect wider price swings.

CECO is growing revenue faster at 35.4% — sustainability is the question.

ZWS generates stronger free cash flow (83M), providing more financial flexibility.

Bottom Line

ZWS scores higher overall (56/100 vs 54/100). 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.

CECO Environmental Corp.

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

CECO Environmental Corporation. The company is headquartered in Dallas, Texas.

Visit Website →

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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