Energy Recovery (NASDAQ:ERII) and Save The World Air (OTCMKTS:QSEP) Head-To-Head Review

Save The World Air (OTCMKTS:QSEP) 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 analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

Save The World Air has a beta of -0.99, suggesting that its stock price is 199% less volatile than the S&P 500. Comparatively, Energy Recovery has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Save The World Air and Energy Recovery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Save The World Air	0	0	0	0	0.00
Energy Recovery	0	2	1	1	2.75

Energy Recovery has a consensus target price of $17.07, indicating a potential upside of 18.27%. Given Energy Recovery’s stronger consensus rating and higher possible upside, analysts clearly believe Energy Recovery is more favorable than Save The World Air.

Institutional & Insider Ownership

83.6% of Energy Recovery shares are held by institutional investors. 9.0% of Save The World Air shares are held by insiders. Comparatively, 3.2% of Energy Recovery shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Save The World Air and Energy Recovery”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Save The World Air	N/A	N/A	-$1.93 million	($0.02)	-7.94
Energy Recovery	$144.95 million	5.27	$23.05 million	$0.34	42.44

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

Profitability

This table compares Save The World Air and Energy Recovery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Save The World Air	N/A	N/A	-3,530.67%
Energy Recovery	14.44%	10.09%	8.77%

Summary

Energy Recovery beats Save The World Air on 13 of the 14 factors compared between the two stocks.

About Save The World Air

QS Energy, Inc. develops and commercializes energy efficiency technologies in the United States and internationally. The company’s energy efficiency technologies assist in meeting energy demands, enhancing the economics of oil transport, and reducing greenhouse gas emissions. The company’s primary technology comprises Applied Oil Technology, a commercial-grade crude oil pipeline transportation flow-assurance product that reduces crude oil viscosity by applying a high intensity electrical field to crude oil while in transit. It serves upstream and midstream energy sectors. The company was formerly known as Save the World Air, Inc. and changed its name to QS Energy, Inc. in August 2015. QS Energy, Inc. was incorporated in 1998 and is based in Tomball, Texas.

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.