Hyster-Yale (NYSE:HY) vs. Energy Recovery (NASDAQ:ERII) Head-To-Head Comparison

Energy Recovery (NASDAQ:ERII) and Hyster-Yale (NYSE:HY) are both small-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Profitability

This table compares Energy Recovery and Hyster-Yale’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energy Recovery	12.72%	8.25%	7.24%
Hyster-Yale	-3.33%	-21.03%	-4.87%

Valuation & Earnings

This table compares Energy Recovery and Hyster-Yale”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energy Recovery	$134.99 million	2.59	$22.96 million	$0.28	24.25
Hyster-Yale	$3.77 billion	0.14	-$60.10 million	($6.56)	-4.39

Energy Recovery has higher earnings, but lower revenue than Hyster-Yale. Hyster-Yale is trading at a lower price-to-earnings ratio than Energy Recovery, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Energy Recovery has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Hyster-Yale has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Energy Recovery and Hyster-Yale, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energy Recovery	1	3	0	0	1.75
Hyster-Yale	1	1	2	0	2.25

Energy Recovery presently has a consensus price target of $11.67, suggesting a potential upside of 71.82%. Hyster-Yale has a consensus price target of $47.50, suggesting a potential upside of 64.84%. Given Energy Recovery’s higher possible upside, equities research analysts clearly believe Energy Recovery is more favorable than Hyster-Yale.

Institutional & Insider Ownership

83.6% of Energy Recovery shares are held by institutional investors. Comparatively, 46.5% of Hyster-Yale shares are held by institutional investors. 2.5% of Energy Recovery shares are held by insiders. Comparatively, 37.8% of Hyster-Yale shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Energy Recovery beats Hyster-Yale on 8 of the 13 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 Hyster-Yale

Hyster-Yale, Inc., through its subsidiaries, designs, engineers, manufactures, sells, and services a line of lift trucks, attachments, and aftermarket parts worldwide. The company manufactures components, such as frames, masts, and transmissions; and assembles lift trucks. It markets its products primarily under the Hyster and Yale brand names to independent Hyster and Yale retail dealerships. The company also sells aftermarket parts under the Hyster and Yale, as well as UNISOURCE and PREMIER brands to Hyster and Yale dealers for the service of competitor lift trucks. In addition, it produces and distributes attachments, forks, and lift tables under the Bolzoni, Auramo, and Meyer brand names; and designs and produces products in the port equipment and rough terrain forklift markets. Further, the company designs, manufactures, and sells hydrogen fuel-cell stacks and engines. It serves light and heavy manufacturers, trucking and automotive companies, rental companies, building materials and paper suppliers, lumber, metal products, warehouses, retailers, food distributors, container handling companies, and U.S. and non-U.S. governmental agencies. The company was formerly known as Hyster-Yale Materials Handling, Inc. and changed its name to Hyster-Yale, Inc. in June 2024. Hyster-Yale, Inc. was incorporated in 1991 and is headquartered in Cleveland, Ohio.