Energy Recovery, Inc. (ERII) vs Veralto Corporation (VLTO)

Energy Recovery, Inc. and Veralto Corporation are both Pollution & Treatment Controls companies. Veralto Corporation is the larger, with a market value of $23.5B against $353.2M — 66.4× the size. Energy Recovery, Inc. trades at the lower P/E: 23.5× against 24.3×. Veralto Corporation grew revenue faster over the last twelve months: 6.23% against −15.0%. Veralto Corporation has the higher net margin (17.4% vs 12.7%) and the higher return on invested capital (18.6% vs 11.2%). Across the 22 metrics below, Energy Recovery, Inc. leads on 13 and Veralto Corporation on 9.

Valuation

Metric ERII VLTO Pollution & Treatment Controls median
P/E 23.48 24.33 —
P/S 2.91 4.18 3.64
P/B 2.03 7.68 2.08
Price to free cash flow 9.08 22.74 —
EV/EBITDA 15.16 18.06 17.68
EV/Sales 2.25 4.40 4.26
Earnings yield 4.26% 4.11% (18.01%)
Free cash flow yield 11.02% 4.40% (5.86%)

Profitability

Metric ERII VLTO Pollution & Treatment Controls median
Gross margin 64.01% 60.18% 34.73%
Operating margin 11.81% 22.74% (29.01%)
Net margin 12.72% 17.35% (31.94%)
Free cash flow margin 32.02% 18.38% (12.20%)
Return on equity 8.58% 34.31% (38.24%)
Return on assets 7.48% 12.56% (26.06%)
Return on invested capital 11.20% 18.57% 0.00%

Growth

Metric ERII VLTO Pollution & Treatment Controls median
Revenue growth (TTM) (14.95%) 6.23% 9.79%
EPS growth (last fiscal year) 5.00% 12.57% —
Revenue growth, 5-year CAGR 2.56% 4.82% 8.56%
Net income growth, 5-year CAGR (2.74%) 5.36% 0.00%

Health

Metric ERII VLTO Pollution & Treatment Controls median
Debt to equity 0.00 1.09 0.03
Current ratio 8.05 1.78 1.90
Net debt to EBITDA (2.75) 0.47 0.30

Dividend

Metric ERII VLTO Pollution & Treatment Controls median
Dividend yield — 0.33% —
Payout ratio 0.00 — 0.00

Size

Metric ERII VLTO Pollution & Treatment Controls median
Market cap 353.23m 23.45b 48.08m

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