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 $377.7M against $342.5M — 1.1× the size. PureCycle Technologies, Inc. has negative trailing earnings, so its P/E is not meaningful; Energy Recovery, Inc. trades at 74.3×. Energy Recovery, Inc. has the higher net margin (5.15% vs −1,528.6%) and the higher return on invested capital (0.59% vs −18.6%). 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 74.27 n/m —
P/S 3.65 24.52 2.57
P/B 2.21 18.14 3.65
Price to free cash flow 11.24 n/m —
EV/EBITDA 67.04 n/m 18.43
EV/Sales 2.94 43.90 2.88
Earnings yield 1.35% (66.81%) (13.60%)
Free cash flow yield 8.90% (62.30%) (11.65%)

Profitability

Metric ERII PCT Pollution & Treatment Controls median
Gross margin 60.96% (813.86%) 32.15%
Operating margin 0.78% (1,313.83%) (17.50%)
Net margin 5.15% (1,528.60%) (17.98%)
Free cash flow margin 32.45% (1,527.69%) (10.60%)
Return on equity 2.97% (482.42%) (36.93%)
Return on assets 2.56% (21.50%) (24.86%)
Return on invested capital 0.59% (18.58%) (0.06%)

Growth

Metric ERII PCT Pollution & Treatment Controls median
Revenue growth (TTM) (26.20%) — 8.69%
EPS growth (last fiscal year) 5.00% 30.86% 11.29%
Revenue growth, 5-year CAGR 2.56% — 12.30%
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 1.32 0.13
Current ratio 7.22 1.60 1.84
Net debt to EBITDA (2.75) (1.70) 0.50

Dividend

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

Size

Metric ERII PCT Pollution & Treatment Controls median
Market cap 342.51m 377.70m 73.82m

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