Head to Head Survey: Energy Recovery (ERII) & Its Peers

Energy Recovery (NASDAQ: ERII) is one of 20 public companies in the “Industrial Machinery” industry, but how does it compare to its competitors? We will compare Energy Recovery to related businesses based on the strength of its analyst recommendations, valuation, dividends, earnings, risk, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Energy Recovery and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Energy Recovery 0 0 8 0 3.00
Energy Recovery Competitors 52 322 335 10 2.42

Energy Recovery currently has a consensus target price of $17.00, indicating a potential upside of 78.20%. As a group, “Industrial Machinery” companies have a potential upside of 6.06%. Given Energy Recovery’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Energy Recovery is more favorable than its competitors.

Volatility & Risk

Energy Recovery has a beta of 5.59, indicating that its stock price is 459% more volatile than the S&P 500. Comparatively, Energy Recovery’s competitors have a beta of 1.62, indicating that their average stock price is 62% more volatile than the S&P 500.

Insider & Institutional Ownership

33.7% of Energy Recovery shares are owned by institutional investors. Comparatively, 65.2% of shares of all “Industrial Machinery” companies are owned by institutional investors. 23.6% of Energy Recovery shares are owned by insiders. Comparatively, 12.1% of shares of all “Industrial Machinery” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Energy Recovery and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Energy Recovery $49.72 million $1.03 million 159.00
Energy Recovery Competitors $666.74 million $40.55 million 86.49

Energy Recovery’s competitors have higher revenue and earnings than Energy Recovery. Energy Recovery is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Energy Recovery and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Energy Recovery 7.78% 5.75% 2.60%
Energy Recovery Competitors -19.95% 10.23% 4.22%

Summary

Energy Recovery beats its competitors on 7 of the 13 factors compared.

About Energy Recovery

Energy Recovery, Inc. is an energy solutions provider to industrial fluid flow markets. The Company’s solutions convert wasted pressure energy into a reusable asset and preserve or eliminate pumping technology in hostile processing environments. Its segments include Water, Oil & Gas, and Corporate. The Water Segment focuses on products sold for use in reverse osmosis water desalination. The Oil & Gas Segment consists of products sold for use in hydraulic fracturing, gas processing, and chemical processing. The Company offers energy recovery devices (ERDs) in the water desalination market with its pressure exchanger (PX) and turbocharger technologies. The Company offers VorTeq hydraulic fracturing system, IsoBoost, and IsoGen product lines to the oil and gas market. The Company’s customers include engineering, procurement and construction companies, original equipment manufacturers, international oil companies, national oil companies, and exploration and production companies.

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