Energy Recovery, Inc. (ERII) vs PureCycle Technologies, Inc. (PCT)

Energy Recovery, Inc. and PureCycle Technologies, Inc. are both Pollution & Treatment Controls companies. PureCycle Technologies, Inc. is the larger, with a market value of $998.5M against $353.2M — 2.8× the size. PureCycle Technologies, Inc. has negative trailing earnings, so its P/E is not meaningful; Energy Recovery, Inc. trades at 23.5×. Energy Recovery, Inc. has the higher net margin (12.7% vs −1,775.6%) and the higher return on invested capital (11.2% vs −19.3%). Across the 17 metrics below, Energy Recovery, Inc. leads on 15 and PureCycle Technologies, Inc. on 2.

Valuation

Metric ERII PCT Pollution & Treatment Controls median
P/E 23.48 n/m —
P/S 2.91 67.20 3.64
P/B 2.03 59.66 2.08
Price to free cash flow 9.08 n/m —
EV/EBITDA 15.16 n/m 17.68
EV/Sales 2.25 85.91 4.26
Earnings yield 4.26% (26.69%) (18.01%)
Free cash flow yield 11.02% (22.95%) (5.86%)

Profitability

Metric ERII PCT Pollution & Treatment Controls median
Gross margin 64.01% (782.77%) 34.73%
Operating margin 11.81% (1,316.81%) (29.01%)
Net margin 12.72% (1,775.62%) (31.94%)
Free cash flow margin 32.02% (1,542.05%) (12.20%)
Return on equity 8.58% (427.37%) (38.24%)
Return on assets 7.48% (23.90%) (26.06%)
Return on invested capital 11.20% (19.25%) 0.00%

Growth

Metric ERII PCT Pollution & Treatment Controls median
Revenue growth (TTM) (14.95%) — 9.79%
EPS growth (last fiscal year) 5.00% 30.86% —
Revenue growth, 5-year CAGR 2.56% — 8.56%
Net income growth, 5-year CAGR (2.74%) 0.00% 0.00%

Health

Metric ERII PCT Pollution & Treatment Controls median
Debt to equity 0.00 1.47 0.03
Current ratio 8.05 2.60 1.90
Net debt to EBITDA (2.75) (1.70) 0.30

Dividend

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

Size

Metric ERII PCT Pollution & Treatment Controls median
Market cap 353.23m 998.50m 48.08m

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