Energy Recovery (NASDAQ:ERII) & Sancon Resources Recovery (OTCMKTS:IGSC) Critical Analysis

Sancon Resources Recovery (OTCMKTS:IGSC) and Energy Recovery (NASDAQ:ERII) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Risk & Volatility

Sancon Resources Recovery has a beta of -6.13, indicating that its stock price is 713% less volatile than the S&P 500. Comparatively, Energy Recovery has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

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. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Sancon Resources Recovery and Energy Recovery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sancon Resources Recovery	13.08%	8.90%	5.81%
Energy Recovery	14.44%	10.09%	8.77%

Valuation and Earnings

This table compares Sancon Resources Recovery and Energy Recovery”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sancon Resources Recovery	$1.74 million	N/A	$200,000.00	N/A	N/A
Energy Recovery	$144.95 million	5.27	$23.05 million	$0.34	42.41

Energy Recovery has higher revenue and earnings than Sancon Resources Recovery.

Analyst Ratings

This is a summary of current ratings and price targets for Sancon Resources Recovery and Energy Recovery, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sancon Resources Recovery	0	0	0	0	0.00
Energy Recovery	0	2	1	1	2.75

Energy Recovery has a consensus price target of $17.07, indicating a potential upside of 18.35%. Given Energy Recovery’s stronger consensus rating and higher probable upside, analysts plainly believe Energy Recovery is more favorable than Sancon Resources Recovery.

Summary

Energy Recovery beats Sancon Resources Recovery on 12 of the 12 factors compared between the two stocks.

About Sancon Resources Recovery

IGS Capital Group Limited, through its subsidiary, IGS Mart SDN BHD, operates a convenient store in Malaysia. It operates its store under the Like Mart name. The company was formerly known as Sancon Resources Recovery, Inc. and changed its name to IGS Capital Group Limited in June 2017. The company was incorporated in 2003 and is based in Petaling Jaya, Malaysia. IGS Capital Group Limited is a subsidiary of Pontoon Boat Inc.

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.