WallStSmart

Energy Recovery Inc (ERII)vs374Water Inc. Common Stock (SCWO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy Recovery Inc generates 6966% more annual revenue ($134.99M vs $1.91M). ERII leads profitability with a 17.0% profit margin vs 0.0%. 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

SCWO

Avoid

23

out of 100

Grade: F

Growth: 6.7Profit: 2.5Value: 5.0Quality: 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 SCWO.

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

SCWO0 strengths · Avg: 0/10

No standout strengths identified

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%

SCWO4 concerns · Avg: 3.5/10
Price/BookValuation
8.3x4/10

Trading at 8.3x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$53.48M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

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 : SCWO

SCWO has a balanced fundamental profile.

Bear Case : ERII

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

Bear Case : SCWO

The primary concerns for SCWO are Price/Book, EPS Growth, Market Cap.

Key Dynamics to Monitor

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

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

SCWO is growing revenue faster at 8.3% — sustainability is the question.

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

Bottom Line

ERII scores higher overall (59/100 vs 23/100), backed by strong 17.0% margins. Both earn "Buy" and "Avoid" 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.

374Water Inc. Common Stock

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

374Water, Inc. is focused on providing technology that addresses the challenges of environmental pollution. The company is headquartered in Durham, North Carolina.

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