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 $355.3M against $29.7M — 11.9× the size. Birchtech Corp. has negative trailing earnings, so its P/E is not meaningful; Energy Recovery, Inc. trades at 24.0×. 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 24.00 —
P/S 1.55 2.97 2.54
P/B 3.65 2.08 3.84
Price to free cash flow n/m 9.28 —
EV/EBITDA n/m 15.54 18.21
EV/Sales 0.95 2.31 2.84
Earnings yield (13.27%) 4.17% (11.84%)
Free cash flow yield (12.95%) 10.78% (10.25%)

Profitability

Metric BCHT ERII Pollution & Treatment Controls median
Gross margin 39.70% 64.01% 32.15%
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% (0.06%)

Growth

Metric BCHT ERII Pollution & Treatment Controls median
Revenue growth (TTM) 11.02% (14.95%) 7.96%
EPS growth (last fiscal year) 70.91% 5.00% 11.29%
Revenue growth, 5-year CAGR 16.66% 2.56% 12.30%
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 0.14
Current ratio 1.42 8.05 1.90
Net debt to EBITDA 0.79 (2.75) 0.50

Dividend

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

Size

Metric BCHT ERII Pollution & Treatment Controls median
Market cap 29.73m 355.27m 61.75m

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