WallStSmart

Energy Recovery Inc (ERII)vsVeralto Corporation (VLTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Veralto Corporation generates 3977% more annual revenue ($5.50B vs $134.99M). VLTO leads profitability with a 17.1% profit margin vs 17.0%. VLTO appears more attractively valued with a PEG of 3.29. VLTO earns a higher WallStSmart Score of 60/100 (C+).

ERII

Buy

59

out of 100

Grade: C

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

VLTO

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 8.5Value: 6.0Quality: 5.0
Piotroski: 2/9
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
VLTOUndervalued (+4.0%)

Margin of Safety

+4.0%

Fair Value

$98.96

Current Price

$87.11

$11.85 discount

UndervaluedFair: $98.96Overvalued

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

VLTO2 strengths · Avg: 9.0/10
Return on EquityProfitability
36.5%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
22.7%8/10

Strong operational efficiency at 22.7%

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%

VLTO3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.292/10

Expensive relative to growth rate

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 : VLTO

The strongest argument for VLTO centers on Return on Equity, Operating Margin. Profitability is solid with margins at 17.1% and operating margin at 22.7%.

Bear Case : ERII

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

Bear Case : VLTO

The primary concerns for VLTO are Revenue Growth, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

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

VLTO carries more volatility with a beta of 1.11 — expect wider price swings.

VLTO is growing revenue faster at 3.8% — sustainability is the question.

VLTO generates stronger free cash flow (291M), providing more financial flexibility.

Bottom Line

VLTO scores higher overall (60/100 vs 59/100), backed by strong 17.1% 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.

Veralto Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Veralto Corporation provides water supply services.

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