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 $7.8B against $338.9M — 22.9× the size. Energy Recovery, Inc. trades at the lower P/E: 22.9× against 28.7×. Zurn Elkay Water Solutions Cor grew revenue faster over the last twelve months: 10.7% against −15.0%. Zurn Elkay Water Solutions Cor has the higher net margin (15.5% vs 12.7%) and the higher return on invested capital (13.0% vs 11.2%). Across the 22 metrics below, Energy Recovery, Inc. leads on 13 and Zurn Elkay Water Solutions Cor on 9.

Valuation

Metric ERII ZWS Pollution & Treatment Controls median
P/E 22.93 28.65 —
P/S 2.84 4.39 2.78
P/B 1.98 4.73 1.98
Price to free cash flow 8.86 20.74 —
EV/EBITDA 14.65 17.41 18.09
EV/Sales 2.17 4.47 2.17
Earnings yield 4.36% 3.49% (22.91%)
Free cash flow yield 11.28% 4.82% (7.86%)

Profitability

Metric ERII ZWS Pollution & Treatment Controls median
Gross margin 64.01% 49.01% 34.98%
Operating margin 11.81% 20.84% (29.01%)
Net margin 12.72% 15.45% (31.94%)
Free cash flow margin 32.02% 21.19% (12.20%)
Return on equity 8.58% 17.13% (38.24%)
Return on assets 7.48% 10.16% (26.06%)
Return on invested capital 11.20% 12.98% 0.00%

Growth

Metric ERII ZWS Pollution & Treatment Controls median
Revenue growth (TTM) (14.95%) 10.69% 9.79%
EPS growth (last fiscal year) 5.00% 25.00% 13.10%
Revenue growth, 5-year CAGR 2.56% 13.24% 8.56%
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 0.03
Current ratio 8.05 3.05 1.90
Net debt to EBITDA (2.75) 0.53 0.38

Dividend

Metric ERII ZWS Pollution & Treatment Controls median
Dividend yield — 0.94% —
Payout ratio — 0.27 —

Size

Metric ERII ZWS Pollution & Treatment Controls median
Market cap 338.94m 7.77b 44.11m

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