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ASC vs ERII

ASC
Ardmore Shipping Corporation
NEUTRAL
Price
$11.91
Market Cap
$484.7M
Sector
Industrials
AI Confidence
65%
ERII
Energy Recovery, Inc.
NEUTRAL
Price
$10.72
Market Cap
$567.9M
Sector
Industrials
AI Confidence
90%

Valuation

P/E Ratio
ASC
15.08
ERII
24.36
Forward P/E
ASC
17.01
ERII
11.57
P/B Ratio
ASC
0.77
ERII
2.75
P/S Ratio
ASC
1.57
ERII
4.21
EV/EBITDA
ASC
7.65
ERII
17.68

Profitability

Gross Margin
ASC
33.31%
ERII
65.14%
Operating Margin
ASC
18.55%
ERII
46.49%
Profit Margin
ASC
11.5%
ERII
17.01%
ROE
ASC
5.39%
ERII
11.03%
ROA
ASC
3.63%
ERII
6.47%

Growth

Revenue Growth
ASC
-15.5%
ERII
-0.3%
Earnings Growth
ASC
-45.7%
ERII
20.1%

Financial Health

Debt/Equity
ASC
0.18
ERII
0.05
Current Ratio
ASC
4.46
ERII
10.44
Quick Ratio
ASC
3.87
ERII
8.75

Dividends

Dividend Yield
ASC
3.37%
ERII
--
Payout Ratio
ASC
48.1%
ERII
0.0%

AI Verdict

ASC NEUTRAL

ASC exhibits mixed financial health with a Piotroski F-Score of 4/9 indicating borderline stability, while the absence of an Altman Z-Score prevents a full distress risk assessment. Despite strong recent earnings surprises and a solid dividend yield, the company faces significant headwinds with sharply declining year-over-year revenue and earnings growth. Valuation appears reasonable relative to sector peers given the low P/E and price-to-book ratio, but weak growth metrics and limited cash flow transparency constrain upside. The strong analyst recommendation contrasts with deteriorating fundamentals, suggesting potential optimism priced in.

Strengths
Strong recent quarterly earnings performance with 3 out of last 4 beats and consistent positive surprises averaging 15.6%
Low Debt/Equity ratio of 0.18 indicates conservative capital structure and low leverage risk
High current and quick ratios (4.46 and 3.87) reflect robust short-term liquidity position
Risks
Piotroski F-Score of 4/9 suggests weak financial health, particularly concerning profitability and leverage trends
Sharp YoY revenue decline of -15.5% and earnings drop of -45.7% indicate deteriorating operating performance
Missing key financial data (EV, shares outstanding, cash, debt, ROIC, free cash flow) limits confidence in financial transparency
ERII NEUTRAL

ERII shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Mixed signals with both opportunities and risks present.

Strengths
Strong financial trend (Piotroski F-Score: 7/9)
Low debt with D/E ratio of 0.05
Risks
Premium vs Graham Number ($6.22)
Declining revenue (-0.3%)

Compare Another Pair

ASC vs ERII: Head-to-Head Comparison

This page compares Ardmore Shipping Corporation (ASC) and Energy Recovery, Inc. (ERII) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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