Energy Recovery (NASDAQ: ERII) and Albany International (NYSE:AIN) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Energy Recovery $49.72 million 8.41 $1.03 million $0.07 111.43
Albany International $863.72 million 2.41 $30.95 million $0.96 67.29

Albany International has higher revenue and earnings than Energy Recovery. Albany International is trading at a lower price-to-earnings ratio than Energy Recovery, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Energy Recovery has a beta of 5.48, indicating that its stock price is 448% more volatile than the S&P 500. Comparatively, Albany International has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Dividends

Albany International pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Energy Recovery does not pay a dividend. Albany International pays out 70.8% of its earnings in the form of a dividend.

Institutional & Insider Ownership

34.3% of Energy Recovery shares are owned by institutional investors. Comparatively, 90.7% of Albany International shares are owned by institutional investors. 23.6% of Energy Recovery shares are owned by company insiders. Comparatively, 11.6% of Albany International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Energy Recovery and Albany International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Energy Recovery 0 0 7 0 3.00
Albany International 0 1 0 0 2.00

Energy Recovery currently has a consensus target price of $16.43, suggesting a potential upside of 110.62%. Given Energy Recovery’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Energy Recovery is more favorable than Albany International.

Profitability

This table compares Energy Recovery and Albany International’s 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%
Albany International 3.58% 9.44% 3.94%

Summary

Energy Recovery beats Albany International on 9 of the 16 factors compared between the two stocks.

Energy Recovery Company Profile

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.

Albany International Company Profile

Albany International Corp. is focused on textiles and materials processing business. The Company operates through two segments: Machine Clothing and Albany Engineered Composites. The Company’s Machine Clothing segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, nonwovens, fiber cement and various other industrial applications. The Machine Clothing segment also supplies customized, consumable fabrics used in the manufacturing process in the pulp, corrugator, nonwovens, fiber cement, building products, and tannery and textile industries. Its Albany Engineered Composites segment includes Albany Safran Composites, LLC (ASC), in which its customer SAFRAN Group owns interest and provides engineered composite structures based on its technology to customers in the aerospace and defense industries.

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