Birchtech Corp. (BCHT) vs Energy Recovery, Inc. (ERII)

Birchtech Corp. and Energy Recovery, Inc. are both Pollution & Treatment Controls companies. Energy Recovery, Inc. is the larger, with a market value of $353.2M against $42.6M — 8.3× the size. Birchtech Corp. has negative trailing earnings, so its P/E is not meaningful; Energy Recovery, Inc. trades at 23.5×. Birchtech Corp. grew revenue faster over the last twelve months: 11.0% against −15.0%. Energy Recovery, Inc. has the higher net margin (12.7% vs −21.7%) and the higher return on invested capital (11.2% vs 0.00%). Across the 19 metrics below, Energy Recovery, Inc. leads on 13 and Birchtech Corp. on 6.

Valuation

Metric BCHT ERII Pollution & Treatment Controls median
P/E n/m 23.48 —
P/S 2.21 2.91 3.64
P/B 5.20 2.03 2.08
Price to free cash flow n/m 9.08 —
EV/EBITDA n/m 15.16 17.68
EV/Sales 1.61 2.25 4.26
Earnings yield (9.32%) 4.26% (18.01%)
Free cash flow yield (9.09%) 11.02% (5.86%)

Profitability

Metric BCHT ERII Pollution & Treatment Controls median
Gross margin 39.70% 64.01% 34.73%
Operating margin (17.07%) 11.81% (29.01%)
Net margin (21.73%) 12.72% (31.94%)
Free cash flow margin (20.06%) 32.02% (12.20%)
Return on equity (134.41%) 8.58% (38.24%)
Return on assets (29.78%) 7.48% (26.06%)
Return on invested capital 0.00% 11.20% 0.00%

Growth

Metric BCHT ERII Pollution & Treatment Controls median
Revenue growth (TTM) 11.02% (14.95%) 9.79%
EPS growth (last fiscal year) 70.91% 5.00% —
Revenue growth, 5-year CAGR 16.66% 2.56% 8.56%
Net income growth, 5-year CAGR 0.00% (2.74%) 0.00%

Health

Metric BCHT ERII Pollution & Treatment Controls median
Debt to equity 0.04 0.00 0.03
Current ratio 1.42 8.05 1.90
Net debt to EBITDA 0.79 (2.75) 0.30

Dividend

Metric BCHT ERII Pollution & Treatment Controls median
Dividend yield — — —
Payout ratio — 0.00 0.00

Size

Metric BCHT ERII Pollution & Treatment Controls median
Market cap 42.62m 353.23m 48.08m

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