Cadiz, Inc. (CDZI) vs Energy Recovery, Inc. (ERII)

Cadiz, Inc. and Energy Recovery, Inc. are both Pollution & Treatment Controls companies. Cadiz, Inc. and Energy Recovery, Inc. are of similar size ($385.3M and $355.3M). Cadiz, Inc. has negative trailing earnings, so its P/E is not meaningful; Energy Recovery, Inc. trades at 24.0×. Energy Recovery, Inc. grew revenue faster over the last twelve months: −15.0% against −21.3%. Energy Recovery, Inc. has the higher net margin (12.7% vs −353.9%) and the higher return on invested capital (11.2% vs −15.1%). Across the 19 metrics below, Energy Recovery, Inc. leads on 15 and Cadiz, Inc. on 4.

Valuation

Metric CDZI ERII Pollution & Treatment Controls median
P/E n/m 24.00 —
P/S 32.33 2.97 2.54
P/B 82.11 2.08 3.84
Price to free cash flow n/m 9.28 —
EV/EBITDA n/m 15.54 18.21
EV/Sales 41.71 2.31 2.84
Earnings yield (10.99%) 4.17% (11.84%)
Free cash flow yield (8.16%) 10.78% (10.25%)

Profitability

Metric CDZI ERII Pollution & Treatment Controls median
Gross margin 27.14% 64.01% 32.15%
Operating margin (236.05%) 11.81% (29.01%)
Net margin (353.94%) 12.72% (31.94%)
Free cash flow margin (263.64%) 32.02% (12.20%)
Return on equity (208.42%) 8.58% (38.24%)
Return on assets (30.92%) 7.48% (26.06%)
Return on invested capital (15.09%) 11.20% (0.06%)

Growth

Metric CDZI ERII Pollution & Treatment Controls median
Revenue growth (TTM) (21.32%) (14.95%) 7.96%
EPS growth (last fiscal year) 9.43% 5.00% 11.29%
Revenue growth, 5-year CAGR 97.64% 2.56% 12.30%
Net income growth, 5-year CAGR 0.00% (2.74%) 0.00%

Health

Metric CDZI ERII Pollution & Treatment Controls median
Debt to equity 24.96 0.00 0.14
Current ratio 1.16 8.05 1.90
Net debt to EBITDA (4.12) (2.75) 0.50

Dividend

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

Size

Metric CDZI ERII Pollution & Treatment Controls median
Market cap 385.28m 355.27m 61.75m

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