Head to Head Analysis: Save The World Air (OTCMKTS:QSEP) & Energy Recovery (NASDAQ:ERII)

Energy Recovery (NASDAQ:ERII) and Save The World Air (OTCMKTS:QSEP) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

83.6% of Energy Recovery shares are held by institutional investors. 3.2% of Energy Recovery shares are held by company insiders. Comparatively, 9.0% of Save The World Air shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Energy Recovery and Save The World Air”s gross 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	5.29	$23.05 million	$0.34	42.56
Save The World Air	N/A	N/A	-$1.93 million	($0.02)	-8.50

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.

Volatility & Risk

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Energy Recovery and Save The World Air, as reported by MarketBeat.

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

Energy Recovery presently has a consensus target price of $17.07, indicating a potential upside of 17.95%. Given Energy Recovery’s stronger consensus rating and higher possible upside, analysts clearly believe Energy Recovery is more favorable than Save The World Air.

Profitability

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

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

Summary

Energy Recovery beats Save The World Air on 13 of the 14 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 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.