AMSC vs ERII

For growth investors, American Superconductor Corporation (AMSC) is the stronger pick with 53.

0% revenue growth year-over-year, versus -7. 1% for Energy Recovery, Inc. (ERII). Energy Recovery, Inc. (ERII) offers the better valuation at 22. 5x trailing P/E (22. 9x forward), making it the more compelling value choice. Analysts rate American Superconductor Corporation (AMSC) a "Buy" — based on 15 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, Energy Recovery, Inc.

(ERII) is the cheapest at 22. 5x versus American Superconductor Corporation at 332. 6x. On forward P/E, American Superconductor Corporation is actually cheaper at 15. 4x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, American Superconductor Corporation (AMSC) delivered a total return of +255.

0%, compared to -54. 3% for Energy Recovery, Inc. (ERII). Over 10 years, the gap is even starker: AMSC returned +379. 0% versus ERII's -11. 9%. 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), Energy Recovery, Inc.

(ERII) is the lower-risk stock at 1. 53β versus American Superconductor Corporation's 2. 90β — meaning AMSC is approximately 90% more volatile than ERII relative to the S&P 500. On balance sheet safety, American Superconductor Corporation (AMSC) carries a lower debt/equity ratio of 2% versus 5% for Energy Recovery, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), American Superconductor Corporation (AMSC) is pulling ahead at 53.

0% versus -7. 1% for Energy Recovery, Inc. (ERII). On earnings-per-share growth, the picture is similar: American Superconductor Corporation grew EPS 143. 2% year-over-year, compared to 5. 0% for Energy Recovery, Inc.. Over a 3-year CAGR, AMSC leads at 27. 1% 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 2. 7% for American Superconductor Corporation — meaning it keeps 17. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ERII leads at 18. 2% versus -0. 5% for AMSC. 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, American Superconductor Corporation (AMSC) trades at 15.

4x forward P/E versus 22. 9x for Energy Recovery, Inc. — 7. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ERII: 37. 9% to $13. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Energy Recovery, Inc.

(ERII) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. American Superconductor Corporation (AMSC) carries a higher beta of 2. 90 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ERII: -11. 9%, AMSC: +379. 0%), 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.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: AMSC is a small-cap high-growth stock; ERII is a small-cap quality compounder stock. 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.