Critical Comparison: Energy Recovery (ERII) vs. Taronis Technologies (NASDAQ:TRNX)

Energy Recovery (NASDAQ:ERII) and Taronis Technologies (NASDAQ:TRNX) are both small-cap industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Valuation & Earnings

This table compares Energy Recovery and Taronis Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Energy Recovery $74.51 million 7.63 $22.09 million $0.20 52.20
Taronis Technologies $9.71 million 1.59 -$15.04 million N/A N/A

Energy Recovery has higher revenue and earnings than Taronis Technologies.

Profitability

This table compares Energy Recovery and Taronis Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Energy Recovery 39.35% 11.72% 7.29%
Taronis Technologies -154.58% -81.54% -65.69%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Energy Recovery and Taronis Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Energy Recovery 0 1 2 0 2.67
Taronis Technologies 0 0 1 0 3.00

Energy Recovery currently has a consensus target price of $16.50, suggesting a potential upside of 58.05%. Given Energy Recovery’s higher possible upside, equities research analysts plainly believe Energy Recovery is more favorable than Taronis Technologies.

Institutional & Insider Ownership

33.4% of Energy Recovery shares are owned by institutional investors. Comparatively, 0.7% of Taronis Technologies shares are owned by institutional investors. 23.8% of Energy Recovery shares are owned by insiders. Comparatively, 27.3% of Taronis Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Energy Recovery has a beta of 4.77, meaning that its stock price is 377% more volatile than the S&P 500. Comparatively, Taronis Technologies has a beta of -0.66, meaning that its stock price is 166% less volatile than the S&P 500.

Summary

Energy Recovery beats Taronis Technologies on 10 of the 12 factors compared between the two stocks.

Energy Recovery Company Profile

Energy Recovery, Inc. provides energy solutions to industrial fluid flow markets under the ERI, PX, Pressure Exchanger, PX Pressure Exchanger, AT, AquaBold, VorTeq, MTeq, IsoBoost, and IsoGen names. The company operates through Water and Oil & Gas segments. It offers pressure exchanger energy recovery devices for water desalination plants; hydraulic turbochargers for low-pressure brackish, high-pressure seawater reverse osmosis systems, and other water treatment applications; and high-pressure and circulation pumps for small- to medium-sized desalination plants. The company also provides VorTeq solutions for hydraulic fracturing applications; MTeq solutions for mud pumping applications; IsoBoost systems, such as hydraulic turbo chargers, and related controls and automation systems; and IsoGen systems, including hydraulic turbines, and related controls and automation systems. It serves engineering, procurement, and construction firms that design and build large desalination plants; original equipment manufacturers; plant owners and/or operators; oil companies; exploration and production companies; and oilfield service companies. The company operates in the Middle East, Africa, the Americas, Asia, Europe, and internationally. It markets its products through its direct salesforce. Energy Recovery, Inc. was founded in 1992 and is headquartered in San Leandro, California.

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