Energy Recovery Inc (ERII)vsFuel Tech Inc (FTEK)
ERII
Energy Recovery Inc
$7.09
-6.09%
INDUSTRIALS · Cap: $394.58M
FTEK
Fuel Tech Inc
$1.73
+6.13%
INDUSTRIALS · Cap: $43.08M
Smart Verdict
WallStSmart Research — data-driven comparison
Energy Recovery Inc generates 342% more annual revenue ($120.57M vs $27.30M). ERII leads profitability with a 12.7% profit margin vs -12.8%. FTEK appears more attractively valued with a PEG of 2.33. FTEK earns a higher WallStSmart Score of 45/100 (D+).
ERII
Hold45
out of 100
Grade: D+
FTEK
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.1%
Fair Value
$14.03
Current Price
$7.09
$6.94 premium
Margin of Safety
+40.4%
Fair Value
$2.23
Current Price
$1.73
$0.50 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Earnings expanding 20.1% YoY
Reasonable price relative to book value
Earnings expanding 276.0% YoY
Conservative balance sheet, low leverage
16.7% revenue growth
Areas to Watch
Moderate valuation
Smaller company, higher risk/reward
Expensive relative to growth rate
Revenue declined 57.2%
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of -7.3% — below average capital efficiency
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ERII
The strongest argument for ERII centers on Debt/Equity, Altman Z-Score, Price/Book.
Bull Case : FTEK
The strongest argument for FTEK centers on Price/Book, EPS Growth, Debt/Equity. Revenue growth of 16.7% demonstrates continued momentum.
Bear Case : ERII
The primary concerns for ERII are P/E Ratio, Market Cap, PEG Ratio.
Bear Case : FTEK
The primary concerns for FTEK are PEG Ratio, Market Cap, Return on Equity.
Key Dynamics to Monitor
ERII profiles as a declining stock while FTEK is a growth play — different risk/reward profiles.
FTEK carries more volatility with a beta of 1.30 — expect wider price swings.
FTEK is growing revenue faster at 16.7% — sustainability is the question.
ERII generates stronger free cash flow (15M), providing more financial flexibility.
Bottom Line
ERII scores higher overall (45/100 vs 45/100). FTEK offers better value entry with a 40.4% margin of safety. Both earn "Hold" 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.
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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