Energy Recovery, Inc. (ERII) vs Zurn Elkay Water Solutions Cor (ZWS)

Energy Recovery, Inc. and Zurn Elkay Water Solutions Cor are both Pollution & Treatment Controls companies. Zurn Elkay Water Solutions Cor is the larger, with a market value of $7.2B against $342.5M — 21.1× the size. Zurn Elkay Water Solutions Cor trades at the lower P/E: 25.2× against 66.7×. Zurn Elkay Water Solutions Cor grew revenue faster over the last twelve months: 10.1% against −26.2%. Zurn Elkay Water Solutions Cor has the higher net margin (15.9% vs 5.15%) and the higher return on invested capital (13.4% vs 0.59%). Across the 22 metrics below, Energy Recovery, Inc. leads on 11 and Zurn Elkay Water Solutions Cor on 11.

Valuation

Metric ERII ZWS Pollution & Treatment Controls median
P/E 66.70 25.25 —
P/S 3.41 4.00 2.50
P/B 2.07 4.31 3.39
Price to free cash flow 10.48 18.86 —
EV/EBITDA 15.10 15.32 18.45
EV/Sales 2.71 4.10 2.74
Earnings yield 1.50% 3.96% (14.48%)
Free cash flow yield 9.55% 5.30% (11.96%)

Profitability

Metric ERII ZWS Pollution & Treatment Controls median
Gross margin 60.96% 50.41% 32.15%
Operating margin 0.78% 22.07% (17.50%)
Net margin 5.15% 15.91% (17.98%)
Free cash flow margin 35.25% 21.19% (10.60%)
Return on equity 2.97% 17.69% (36.99%)
Return on assets 2.56% 10.58% (24.89%)
Return on invested capital 0.59% 13.35% (0.06%)

Growth

Metric ERII ZWS Pollution & Treatment Controls median
Revenue growth (TTM) (26.20%) 10.06% 8.69%
EPS growth (last fiscal year) 5.00% 25.00% 11.29%
Revenue growth, 5-year CAGR 2.56% 13.24% 12.30%
Net income growth, 5-year CAGR (2.74%) 10.37% 0.00%

Health

Metric ERII ZWS Pollution & Treatment Controls median
Debt to equity 0.00 0.30 0.07
Current ratio 7.22 2.85 1.84
Net debt to EBITDA (2.75) 0.53 0.50

Dividend

Metric ERII ZWS Pollution & Treatment Controls median
Dividend yield — 1.00% —
Payout ratio — 0.26 —

Size

Metric ERII ZWS Pollution & Treatment Controls median
Market cap 342.51m 7.24b 62.87m

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