Critical Comparison: Zurn Elkay Water Solutions Cor (NYSE:ZWS) and China Everbright Environment Group�� (OTCMKTS:CHFFF)

Zurn Elkay Water Solutions Cor (NYSE:ZWS) and China Everbright Environment Group�� (OTCMKTS:CHFFF) are both mid-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

83.3% of Zurn Elkay Water Solutions Cor shares are owned by institutional investors. 2.6% of Zurn Elkay Water Solutions Cor shares are owned by company 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Zurn Elkay Water Solutions Cor and China Everbright Environment Group��, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zurn Elkay Water Solutions Cor	0	4	2	0	2.33
China Everbright Environment Group��	0	0	0	0	0.00

Zurn Elkay Water Solutions Cor currently has a consensus price target of $38.00, suggesting a potential downside of 16.27%. Given Zurn Elkay Water Solutions Cor’s stronger consensus rating and higher possible upside, research analysts clearly believe Zurn Elkay Water Solutions Cor is more favorable than China Everbright Environment Group��.

Profitability

This table compares Zurn Elkay Water Solutions Cor and China Everbright Environment Group��’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zurn Elkay Water Solutions Cor	10.78%	15.23%	9.02%
China Everbright Environment Group��	N/A	N/A	N/A

Dividends

Zurn Elkay Water Solutions Cor pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. China Everbright Environment Group�� pays an annual dividend of $0.14 per share and has a dividend yield of 29.7%. Zurn Elkay Water Solutions Cor pays out 35.6% of its earnings in the form of a dividend. Zurn Elkay Water Solutions Cor has increased its dividend for 3 consecutive years.

Earnings and Valuation

This table compares Zurn Elkay Water Solutions Cor and China Everbright Environment Group��”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zurn Elkay Water Solutions Cor	$1.57 billion	4.85	$160.20 million	$1.01	44.93
China Everbright Environment Group��	$3.88 billion	0.75	$432.80 million	N/A	N/A

China Everbright Environment Group�� has higher revenue and earnings than Zurn Elkay Water Solutions Cor.

Volatility & Risk

Zurn Elkay Water Solutions Cor has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, China Everbright Environment Group�� has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Summary

Zurn Elkay Water Solutions Cor beats China Everbright Environment Group�� on 11 of the 15 factors compared between the two stocks.

About Zurn Elkay Water Solutions Cor

Zurn Elkay Water Solutions Corporation engages in design, procurement, manufacture, and marketing of water management solutions in the United States, Canada, and internationally. It offers water safety and control products, such as backflow preventers, fire system valves, pressure reducing valves, thermostatic mixing valves, PEX pipings, fittings, and installation tools under the Zurn and Wilkins brand names. The company also provides flow systems products comprising point drains, hydrants, fixture carrier systems, chemical drainage systems; and interceptors and separators, acid neutralization systems, and remote monitoring systems under the Zurn and Green Turtle brands. In addition, it develops, manufactures, and markets remote tank monitoring devices, alarms, software, and services. Further, the company offers sensor-operated flush valves under the AquaSense, Aquaflush, and AquaVantage brands; heavy-duty commercial faucets under the AquaSpec brand; water conserving fixtures under the EcoVantage and Zurn One brands; stainless steel products under the Just Manufacturing brand name, which include stainless steel sinks and plumbing fixtures, and various types of sinks, as well as drinking water dispensing and filtration products under the Elkay and Halsey Taylor brands. It distributes to institutional, commercial, waterworks, and residential end markets through independent sales representatives, plumbing wholesalers, and industry-specific distributors in the waterworks, foodservice, industrial, janitorial, sanitation, and sitework industries. The company was formerly known as Zurn Water Solutions Corporation and changed its name to Zurn Elkay Water Solutions Corporation in July 2022. Zurn Elkay Water Solutions Corporation was incorporated in 1892 and is headquartered in Milwaukee, Wisconsin.

About China Everbright Environment Group��

China Everbright Environment Group Limited, an investment holding company, provides environmental solutions worldwide. The company’s Environmental Energy Project Construction and Operation segment constructs and operates food and kitchen waste treatment, leachate and fecal treatment, sludge treatment and disposal, fly ash landfill, medical waste, and solid waste treatment projects, as well as waste-to-energy and methane-to-energy plants. This segment also provides waste sorting, renewable resources utilization, and sanitation operation services. Its Greentech Project Construction and Operation segment constructs and operates integrated biomass utilization, hazardous and solid waste treatment, and solar energy and wind power projects, as well as offers environmental remediation services. The company’s Environmental Water Project Construction and Operation segment constructs, upgrades, and operates waste water treatment plants; water supply and reusable water treatment plants; and sponge city construction, sludge treatment and disposal, leachate treatment, river-basin ecological restoration, and waste water source heat pump projects. This segment also researches and develops water environment technologies and engineering projects. The company’s Others segment conducts environmental protection technology research and development projects; provides environmental related technological, and protection project equipment construction and installation services; designs environmental protection projects; and sells related equipment. It also collects and treats municipal wastes by mechanical and biological technology; and manufactures environmental protection equipment. The company was formerly known as China Everbright International Limited and changed its name to China Everbright Environment Group Limited in September 2020. China Everbright Environment Group Limited was incorporated in 1961 and is headquartered in Hong Kong, Hong Kong.