WallStSmart

Energy Recovery Inc (ERII)vsFuel Tech Inc (FTEK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy Recovery Inc generates 406% more annual revenue ($134.99M vs $26.68M). ERII leads profitability with a 17.0% profit margin vs -8.7%. FTEK appears more attractively valued with a PEG of 2.33. ERII earns a higher WallStSmart Score of 59/100 (C).

ERII

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 6.0Quality: 8.5
Piotroski: 2/9Altman Z: 6.13

FTEK

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 2.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ERIIUndervalued (+5.6%)

Margin of Safety

+5.6%

Fair Value

$16.36

Current Price

$10.17

$6.19 discount

UndervaluedFair: $16.36Overvalued

Intrinsic value data unavailable for FTEK.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ERII5 strengths · Avg: 9.2/10
Operating MarginProfitability
46.5%10/10

Strong operational efficiency at 46.5%

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.1310/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

FTEK2 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
37.2%10/10

Revenue surging 37.2% year-over-year

Areas to Watch

ERII4 concerns · Avg: 2.5/10
Market CapQuality
$501.12M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.332/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.3%2/10

Revenue declined 0.3%

FTEK4 concerns · Avg: 3.3/10
PEG RatioValuation
2.334/10

Expensive relative to growth rate

EPS GrowthGrowth
2.8%4/10

2.8% earnings growth

Market CapQuality
$38.08M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-5.7%2/10

ROE of -5.7% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : ERII

The strongest argument for ERII centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 17.0% and operating margin at 46.5%.

Bull Case : FTEK

The strongest argument for FTEK centers on Price/Book, Revenue Growth. Revenue growth of 37.2% demonstrates continued momentum.

Bear Case : ERII

The primary concerns for ERII are Market Cap, Piotroski F-Score, PEG Ratio.

Bear Case : FTEK

The primary concerns for FTEK are PEG Ratio, EPS Growth, Market Cap.

Key Dynamics to Monitor

ERII profiles as a declining stock while FTEK is a hypergrowth play — different risk/reward profiles.

ERII carries more volatility with a beta of 1.10 — expect wider price swings.

FTEK is growing revenue faster at 37.2% — sustainability is the question.

ERII generates stronger free cash flow (6M), providing more financial flexibility.

Bottom Line

ERII scores higher overall (59/100 vs 52/100), backed by strong 17.0% margins. 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.

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.

Fuel Tech Inc

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Fuel Tech, Inc. provides boiler optimization, efficiency improvement, and air pollution control and reduction solutions to industrial and utility customers around the world. The company is headquartered in Warrenville, Illinois.

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