BMI vs ERII

For growth investors, Badger Meter, Inc.

(BMI) is the stronger pick with 10. 9% revenue growth year-over-year, versus -7. 1% for Energy Recovery, Inc. (ERII). Badger Meter, Inc. (BMI) offers the better valuation at 25. 8x trailing P/E (27. 5x forward), making it the more compelling value choice. Analysts rate Energy Recovery, Inc. (ERII) a "Buy" — based on 16 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Badger Meter, Inc.

(BMI) is the cheapest at 25. 8x versus Energy Recovery, Inc. at 27. 6x. On forward P/E, Badger Meter, Inc. is actually cheaper at 27. 5x.

Over the past 5 years, Badger Meter, Inc.

(BMI) delivered a total return of +40. 9%, compared to -43. 0% for Energy Recovery, Inc. (ERII). Over 10 years, the gap is even starker: BMI returned +253. 2% versus ERII's +2. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Badger Meter, Inc.

(BMI) is the lower-risk stock at 0. 87β versus Energy Recovery, Inc. 's 1. 53β — meaning ERII is approximately 76% more volatile than BMI relative to the S&P 500.

By revenue growth (latest reported year), Badger Meter, Inc.

(BMI) is pulling ahead at 10. 9% versus -7. 1% for Energy Recovery, Inc. (ERII). On earnings-per-share growth, the picture is similar: Badger Meter, Inc. grew EPS 13. 2% year-over-year, compared to 5. 0% for Energy Recovery, Inc.. Over a 3-year CAGR, BMI leads at 17. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Energy Recovery, Inc.

(ERII) is the more profitable company, earning 17. 0% net margin versus 15. 5% for Badger Meter, Inc. — meaning it keeps 17. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BMI leads at 20. 0% versus 18. 2% for ERII. At the gross margin level — before operating expenses — ERII leads at 65. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Badger Meter, Inc.

(BMI) trades at 27. 5x forward P/E versus 28. 2x for Energy Recovery, Inc. — 0. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BMI: 39. 1% to $172. 14.

In this comparison, BMI (1.

2% yield) pays a dividend. ERII does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Badger Meter, Inc.

(BMI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 87), 1. 2% yield, +253. 2% 10Y return). Energy Recovery, Inc. (ERII) carries a higher beta of 1. 53 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (BMI: +253. 2%, ERII: +2. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (BMI (Technology) and ERII (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

BMI pays a dividend while ERII does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.