Energy Recovery Inc (ERII)vsLockheed Martin Corporation (LMT)
ERII
Energy Recovery Inc
$10.70
-3.52%
INDUSTRIALS · Cap: $595.91M
LMT
Lockheed Martin Corporation
$517.97
+1.60%
INDUSTRIALS · Cap: $119.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Lockheed Martin Corporation generates 55539% more annual revenue ($75.11B vs $134.99M). ERII leads profitability with a 17.0% profit margin vs 6.4%. LMT appears more attractively valued with a PEG of 1.08. ERII earns a higher WallStSmart Score of 57/100 (C).
ERII
Buy57
out of 100
Grade: C
LMT
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+6.4%
Fair Value
$16.50
Current Price
$10.70
$5.80 discount
Margin of Safety
-37.4%
Fair Value
$457.50
Current Price
$517.97
$60.47 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 46.5%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Earnings expanding 20.1% YoY
Every $100 of equity generates 68 in profit
Large-cap with strong market position
Areas to Watch
Moderate valuation
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Trading at 15.9x book value
0.3% revenue growth
6.4% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull 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 : LMT
The strongest argument for LMT centers on Return on Equity, Market Cap. PEG of 1.08 suggests the stock is reasonably priced for its growth.
Bear Case : ERII
The primary concerns for ERII are P/E Ratio, Market Cap, Piotroski F-Score.
Bear Case : LMT
The primary concerns for LMT are P/E Ratio, Price/Book, Revenue Growth. Debt-to-equity of 3.23 is elevated, increasing financial risk.
Key Dynamics to Monitor
ERII profiles as a declining stock while LMT is a value play — different risk/reward profiles.
ERII carries more volatility with a beta of 1.08 — expect wider price swings.
LMT is growing revenue faster at 0.3% — sustainability is the question.
ERII generates stronger free cash flow (6M), providing more financial flexibility.
Bottom Line
ERII scores higher overall (57/100 vs 55/100), 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.
Lockheed Martin Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Lockheed Martin Corporation is an American aerospace, defense, information security, and technology company with worldwide interests. It is headquartered in North Bethesda, Maryland, in the Washington, D.C., area.
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