Head-To-Head Comparison: Universal Detection Technology (OTCMKTS:UNDT) & Energy Recovery (NASDAQ:ERII)

Energy Recovery (NASDAQ:ERII) and Universal Detection Technology (OTCMKTS:UNDT) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Insider and Institutional Ownership

83.6% of Energy Recovery shares are held by institutional investors. 3.2% of Energy Recovery shares are held by insiders. Comparatively, 9.6% of Universal Detection Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Energy Recovery and Universal Detection Technology”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	$144.95 million	4.52	$23.05 million	$0.37	32.49
Universal Detection Technology	N/A	N/A	N/A	N/A	N/A

Energy Recovery has higher revenue and earnings than Universal Detection Technology.

Profitability

This table compares Energy Recovery and Universal Detection Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energy Recovery	15.21%	9.96%	8.75%
Universal Detection Technology	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings for Energy Recovery and Universal Detection Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energy Recovery	0	1	2	3	3.33
Universal Detection Technology	0	0	0	0	0.00

Energy Recovery presently has a consensus price target of $18.88, indicating a potential upside of 57.03%. Given Energy Recovery’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Energy Recovery is more favorable than Universal Detection Technology.

Summary

Energy Recovery beats Universal Detection Technology on 9 of the 10 factors compared between the two stocks.

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.

About Universal Detection Technology

Universal Detection Technology engages in the research, development, marketing, and resale of detection devices for detecting chemical, biological, radiological, and nuclear threats in the United States, Europe, and Asia. It supplies bioterrorism detection kits capable of detecting anthrax, ricin, botulinum, plague, and SEBs; mold detection kits; chemical detection equipment; and radiation detection systems. The company also provides various counter-terrorism services, such as training courses for first responders; event security; threat evaluation and consulting; and DVDs aimed at providing information and training regarding combating terrorism and managing emergency situations. It serves first responders, as well as bioterror and military defense markets. The company markets and sells its products through in-house staff and outside consultants, as well as through the Internet. The company was formerly known as Pollution Research and Control Corporation and changed its name to Universal Detection Technology in August 2003. Universal Detection Technology was founded in 1971 and is headquartered in Beverly Hills, California.