WallStSmart

Energy Recovery Inc (ERII)vsRTX Corporation (RTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

RTX Corporation generates 77446% more annual revenue ($93.50B vs $120.57M). ERII leads profitability with a 12.7% profit margin vs 8.3%. RTX appears more attractively valued with a PEG of 2.30. RTX earns a higher WallStSmart Score of 59/100 (C).

ERII

Hold

45

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 4.0Quality: 9.0
Piotroski: 4/9Altman Z: 7.49

RTX

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 6.0Value: 4.3Quality: 6.0
Piotroski: 6/9Altman Z: 1.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ERIIOvervalued (-10.1%)

Margin of Safety

-10.1%

Fair Value

$14.03

Current Price

$7.55

$6.48 premium

UndervaluedFair: $14.03Overvalued

Intrinsic value data unavailable for RTX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ERII4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.4910/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

RTX3 strengths · Avg: 8.7/10
Market CapQuality
$266.42B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
28.7%8/10

Earnings expanding 28.7% YoY

Free Cash FlowQuality
$3.59B8/10

Generating 3.6B in free cash flow

Areas to Watch

ERII4 concerns · Avg: 2.8/10
P/E RatioValuation
29.7x4/10

Moderate valuation

Market CapQuality
$394.58M3/10

Smaller company, higher risk/reward

PEG RatioValuation
3.332/10

Expensive relative to growth rate

Revenue GrowthGrowth
-57.2%2/10

Revenue declined 57.2%

RTX3 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

P/E RatioValuation
34.9x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.584/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ERII

The strongest argument for ERII centers on Debt/Equity, Altman Z-Score, Price/Book.

Bull Case : RTX

The strongest argument for RTX centers on Market Cap, EPS Growth, Free Cash Flow. Revenue growth of 14.5% demonstrates continued momentum.

Bear Case : ERII

The primary concerns for ERII are P/E Ratio, Market Cap, PEG Ratio.

Bear Case : RTX

The primary concerns for RTX are PEG Ratio, P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

ERII profiles as a declining stock while RTX is a value play — different risk/reward profiles.

ERII carries more volatility with a beta of 0.92 — expect wider price swings.

RTX is growing revenue faster at 14.5% — sustainability is the question.

RTX generates stronger free cash flow (3.6B), providing more financial flexibility.

Bottom Line

RTX scores higher overall (59/100 vs 45/100) and 14.5% revenue growth. Both earn "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.

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.

RTX Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.

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