Energy Recovery, Inc. (ERII) vs 374Water Inc. (SCWO)

Energy Recovery, Inc. and 374Water Inc. are both Pollution & Treatment Controls companies. Energy Recovery, Inc. is the larger, with a market value of $342.5M against $42.8M — 8.0× the size. 374Water Inc. has negative trailing earnings, so its P/E is not meaningful; Energy Recovery, Inc. trades at 74.3×. 374Water Inc. grew revenue faster over the last twelve months: 53.5% against −26.2%. Energy Recovery, Inc. has the higher net margin (5.15% vs −1,056.2%) and the higher return on invested capital (0.59% vs −297.2%). Across the 19 metrics below, Energy Recovery, Inc. leads on 16 and 374Water Inc. on 3.

Valuation

Metric ERII SCWO Pollution & Treatment Controls median
P/E 74.27 n/m —
P/S 3.65 22.64 2.57
P/B 2.21 14.33 3.65
Price to free cash flow 11.24 n/m —
EV/EBITDA 67.04 n/m 18.43
EV/Sales 2.94 23.50 2.88
Earnings yield 1.35% (50.56%) (13.60%)
Free cash flow yield 8.90% (26.53%) (11.65%)

Profitability

Metric ERII SCWO Pollution & Treatment Controls median
Gross margin 60.96% 6.25% 32.15%
Operating margin 0.78% (1,002.21%) (17.50%)
Net margin 5.15% (1,056.18%) (17.98%)
Free cash flow margin 32.45% (595.30%) (10.60%)
Return on equity 2.97% (335.45%) (36.93%)
Return on assets 2.56% (157.47%) (24.86%)
Return on invested capital 0.59% (297.16%) (0.06%)

Growth

Metric ERII SCWO Pollution & Treatment Controls median
Revenue growth (TTM) (26.20%) 53.49% 8.69%
EPS growth (last fiscal year) 5.00% (53.33%) 11.29%
Revenue growth, 5-year CAGR 2.56% 19.95% 12.30%
Net income growth, 5-year CAGR (2.74%) 0.00% 0.00%

Health

Metric ERII SCWO Pollution & Treatment Controls median
Debt to equity 0.00 0.93 0.13
Current ratio 7.22 1.67 1.84
Net debt to EBITDA (2.75) 0.12 0.50

Dividend

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

Size

Metric ERII SCWO Pollution & Treatment Controls median
Market cap 342.51m 42.83m 73.82m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack