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 $28.3B against $342.5M — 82.7× the size. Veralto Corporation trades at the lower P/E: 28.6× against 66.7×. Veralto Corporation grew revenue faster over the last twelve months: 6.40% against −26.2%. Veralto Corporation has the higher net margin (17.3% vs 5.15%) and the higher return on invested capital (18.1% vs 0.59%). Across the 22 metrics below, Energy Recovery, Inc. leads on 11 and Veralto Corporation on 11.

Valuation

Metric ERII VLTO Pollution & Treatment Controls median
P/E 66.70 28.61 —
P/S 3.41 4.89 2.50
P/B 2.07 8.78 3.39
Price to free cash flow 10.48 25.97 —
EV/EBITDA 15.10 21.58 18.45
EV/Sales 2.71 5.09 2.74
Earnings yield 1.50% 3.50% (14.48%)
Free cash flow yield 9.55% 3.85% (11.96%)

Profitability

Metric ERII VLTO Pollution & Treatment Controls median
Gross margin 60.96% 60.20% 32.15%
Operating margin 0.78% 21.84% (17.50%)
Net margin 5.15% 17.27% (17.98%)
Free cash flow margin 35.25% 18.84% (10.60%)
Return on equity 2.97% 32.96% (36.99%)
Return on assets 2.56% 12.80% (24.89%)
Return on invested capital 0.59% 18.13% (0.06%)

Growth

Metric ERII VLTO Pollution & Treatment Controls median
Revenue growth (TTM) (26.20%) 6.40% 8.69%
EPS growth (last fiscal year) 5.00% 12.57% 11.29%
Revenue growth, 5-year CAGR 2.56% 4.82% 12.30%
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 0.90 0.07
Current ratio 7.22 2.03 1.84
Net debt to EBITDA (2.75) 0.47 0.50

Dividend

Metric ERII VLTO Pollution & Treatment Controls median
Dividend yield — 0.45% —
Payout ratio — 0.13 —

Size

Metric ERII VLTO Pollution & Treatment Controls median
Market cap 342.51m 28.34b 62.87m

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