AB SKF (OTCMKTS:SKFRY – Get Free Report) and Energy Recovery (NASDAQ:ERII – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
Volatility and Risk
AB SKF has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Energy Recovery has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
Earnings and Valuation
This table compares AB SKF and Energy Recovery”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AB SKF | $9.36 billion | 1.39 | $401.34 million | $1.12 | 25.49 |
| Energy Recovery | $134.99 million | 2.74 | $22.96 million | $0.28 | 25.61 |
AB SKF has higher revenue and earnings than Energy Recovery. AB SKF is trading at a lower price-to-earnings ratio than Energy Recovery, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
0.1% of AB SKF shares are owned by institutional investors. Comparatively, 83.6% of Energy Recovery shares are owned by institutional investors. 2.5% of Energy Recovery 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.
Profitability
This table compares AB SKF and Energy Recovery’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AB SKF | 5.66% | 12.96% | 6.73% |
| Energy Recovery | 12.72% | 8.25% | 7.24% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for AB SKF and Energy Recovery, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AB SKF | 1 | 4 | 1 | 0 | 2.00 |
| Energy Recovery | 1 | 3 | 0 | 0 | 1.75 |
Energy Recovery has a consensus price target of $11.67, suggesting a potential upside of 62.72%. Given Energy Recovery’s higher possible upside, analysts plainly believe Energy Recovery is more favorable than AB SKF.
About AB SKF
AB SKF (publ) designs, manufactures, and sells bearings and units, seals, lubrication systems, condition monitoring, and services worldwide. It operates in two segments, Industrial and Automotive. The company offers rolling, mounted and housings, super-precision, slewing, plain, magnetic, and thin section bearings; industrial and automotive seals; lubricants, manual lubrication tools, lubricators, automatic lubrication systems, and lubrication system components; maintenance products, such as hydraulic, mechanical, and alignment tools, as well as heaters; belts, pulleys, chains, sprockets, bushings and hubs, couplings, and bolts and tightening systems; condition monitoring systems; test and measuring equipment, such as waviness and roundness analyzers, noise and vibration testers, and grease test rigs, as well as calibration with traceability, machine training and support, and upgrades and refurbishment services; and vehicle aftermarket products. It also provides application engineering services consisting of technical consultancy, numerical simulation and design, and root cause analysis; asset management services, such as assessment and benchmarking, maintenance strategy review, spare parts and inventory management, and lubrication management; condition-based maintenance, including vibration analysis and diagnostics, thermography, lubrication analysis, and condition monitoring system installation; mechanical maintenance comprising mounting and dismounting, precision alignment, and balancing; remanufacturing and customization; and training solutions, which include instructor-led training, e-learning courses, and webinar recordings. The company serves the aerospace, agriculture, automotive, construction, food and beverage, general machinery, machine tools, marine, material handling, metals, mining, mineral processing, ocean energy, pulp and paper, railways, and wind industries. AB SKF (publ) was incorporated in 1907 and is headquartered in Gothenburg, Sweden.
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.
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