Aduro Clean Technologies Inc. (ADUR) vs Energy Recovery, Inc. (ERII)

Aduro Clean Technologies Inc. and Energy Recovery, Inc. are both Pollution & Treatment Controls companies. Aduro Clean Technologies Inc. and Energy Recovery, Inc. are of similar size ($342.5M and $325.6M). Aduro Clean Technologies Inc. has negative trailing earnings, so its P/E is not meaningful; Energy Recovery, Inc. trades at 66.7×. Aduro Clean Technologies Inc. grew revenue faster over the last twelve months: −6.78% against −26.2%. Energy Recovery, Inc. has the higher net margin (5.15% vs 0.00%) and the higher return on invested capital (0.59% vs 0.00%). Across the 16 metrics below, Energy Recovery, Inc. leads on 13 and Aduro Clean Technologies Inc. on 3.

Valuation

Metric ADUR ERII Pollution & Treatment Controls median
P/E n/m 66.70 —
P/S 1,854.72 3.41 2.50
P/B 7.34 2.07 3.39
Price to free cash flow n/m 10.48 —
EV/EBITDA n/m 15.10 18.45
EV/Sales 1,586.17 2.71 2.74
Earnings yield (4.76%) 1.50% (14.48%)
Free cash flow yield (3.07%) 9.55% (11.96%)

Profitability

Metric ADUR ERII Pollution & Treatment Controls median
Gross margin 100.00% 60.96% 32.15%
Operating margin 0.00% 0.78% (17.50%)
Net margin 0.00% 5.15% (17.98%)
Free cash flow margin 0.00% 35.25% (10.60%)
Return on equity (48.86%) 2.97% (36.99%)
Return on assets (39.67%) 2.56% (24.89%)
Return on invested capital 0.00% 0.59% (0.06%)

Growth

Metric ADUR ERII Pollution & Treatment Controls median
Revenue growth (TTM) (6.78%) (26.20%) 8.69%
EPS growth (last fiscal year) (90.62%) 5.00% 11.29%
Revenue growth, 5-year CAGR — 2.56% 12.30%
Net income growth, 5-year CAGR — (2.74%) 0.00%

Health

Metric ADUR ERII Pollution & Treatment Controls median
Debt to equity 0.00 0.00 0.07
Current ratio 88.77 7.22 1.84
Net debt to EBITDA 2.21 (2.75) 0.50

Dividend

Metric ADUR ERII Pollution & Treatment Controls median
Dividend yield — — —
Payout ratio — — —

Size

Metric ADUR ERII Pollution & Treatment Controls median
Market cap 325.60m 342.51m 62.87m

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