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ERII vs ORN

ERII
Energy Recovery, Inc.
NEUTRAL
Price
$10.72
Market Cap
$567.9M
Sector
Industrials
AI Confidence
90%
ORN
Orion Group Holdings, Inc.
BEARISH
Price
$13.62
Market Cap
$551.3M
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
ERII
24.36
ORN
61.91
Forward P/E
ERII
11.57
ORN
20.71
P/B Ratio
ERII
2.75
ORN
3.42
P/S Ratio
ERII
4.21
ORN
0.63
EV/EBITDA
ERII
17.68
ORN
18.28

Profitability

Gross Margin
ERII
65.14%
ORN
12.33%
Operating Margin
ERII
46.49%
ORN
-0.38%
Profit Margin
ERII
17.01%
ORN
0.98%
ROE
ERII
11.03%
ORN
5.41%
ROA
ERII
6.47%
ORN
1.51%

Growth

Revenue Growth
ERII
-0.3%
ORN
14.7%
Earnings Growth
ERII
20.1%
ORN
--

Financial Health

Debt/Equity
ERII
0.05
ORN
0.86
Current Ratio
ERII
10.44
ORN
1.41
Quick Ratio
ERII
8.75
ORN
1.34

Dividends

Dividend Yield
ERII
--
ORN
--
Payout Ratio
ERII
0.0%
ORN
0.0%

AI Verdict

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%)
ORN BEARISH

ORN exhibits a fragile fundamental profile with a Piotroski F-Score of 4/9 (Stable/Weak) and a severe valuation disconnect, as the current price of $13.62 dwarfs both the Graham Number ($4.44) and the Intrinsic Value ($1.54). While revenue growth is healthy at 14.7%, the company struggles with razor-thin profit margins (0.98%) and a negative operating margin (-0.38%). Despite a 'strong_buy' analyst consensus and strong recent price momentum, the combination of a high PEG ratio (28.96), bearish insider selling, and poor earnings consistency suggests the stock is significantly overextended.

Strengths
Consistent revenue growth (14.7% YoY)
Healthy liquidity with a Current Ratio of 1.41
Manageable Debt/Equity ratio of 0.86
Risks
Extreme overvaluation relative to Graham and Intrinsic value models
Negative operating margins indicating inefficiency in core operations
High PEG ratio (28.96) suggesting growth does not justify the current multiple

Compare Another Pair

ERII vs ORN: Head-to-Head Comparison

This page compares Energy Recovery, Inc. (ERII) and Orion Group Holdings, Inc. (ORN) 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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