Contrasting Kronos Advanced Technologies (OTCMKTS:KNOS) and Energy Recovery (NASDAQ:ERII)

Kronos Advanced Technologies (OTCMKTS:KNOS) and Energy Recovery (NASDAQ:ERII) are both small-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

83.6% of Energy Recovery shares are held by institutional investors. 14.3% of Kronos Advanced Technologies shares are held by company insiders. Comparatively, 3.2% of Energy Recovery shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Kronos Advanced Technologies has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Energy Recovery has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Kronos Advanced Technologies and Energy Recovery, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kronos Advanced Technologies	0	0	0	0	0.00
Energy Recovery	0	2	3	2	3.00

Energy Recovery has a consensus price target of $18.75, indicating a potential upside of 18.90%. Given Energy Recovery’s stronger consensus rating and higher possible upside, analysts clearly believe Energy Recovery is more favorable than Kronos Advanced Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kronos Advanced Technologies	N/A	N/A	N/A
Energy Recovery	17.02%	11.67%	10.23%

Valuation & Earnings

This table compares Kronos Advanced Technologies and Energy Recovery”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kronos Advanced Technologies	N/A	N/A	N/A	N/A	N/A
Energy Recovery	$144.95 million	5.79	$23.05 million	$0.42	37.55

Energy Recovery has higher revenue and earnings than Kronos Advanced Technologies.

Summary

Energy Recovery beats Kronos Advanced Technologies on 9 of the 11 factors compared between the two stocks.

About Kronos Advanced Technologies

Kronos Advanced Technologies Inc. manufactures, distributes, and licenses air movement and purification devices in the United States. The company offers air purifiers and masks. It markets and sells products directly through our website, 1800safeair.com, as well as through independent sales representatives. The company was formerly known as TSET, Inc. and changed its name to Kronos Advanced Technologies Inc. in January 2001. Kronos Advanced Technologies Inc. was incorporated in 1980 and is headquartered in Parkersburg, West Virginia.

About Energy Recovery

Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells energy efficiency technology solutions in the Americas, the Middle East, Africa, Asia, and Europe. The company operates through Water and Emerging Technologies segments. The company offers high and low pressure, and ultra pressure exchangers; AT and LPT hydraulic turbochargers; and high-pressure feed and circulation booster pumps for use in seawater and brackish desalination, and wastewater treatment. It also provides PX G1300, which reduces energy consumption and operating costs of carbon dioxide-based refrigeration systems; and spare parts, as well as repair, field, and commissioning services. It sells its products under the ERI, PX, Pressure Exchanger, PX Pressure Exchanger, Ultra PX, PX G, PX G1300, PX PowerTrain, AT, and Aquabold brands to original equipment manufacturers, supermarket chains, cold storage facilities, refrigeration system installers, and other industrial users; aftermarket customers consisting of desalination plant owners and operators; and project developers, end-users, and industry consultants, as well as engineering, procurement, and construction firms. Energy Recovery, Inc. was incorporated in 1992 and is headquartered in San Leandro, California.