International Wastewater Systems is a small wastewater heat recovery company listed on the small Canadian Security Exchange (CSE) under the symbol IWS. Revenue to date has been quite small and the company is not profitable as of yet. That being said, it has a market cap of approximately $27.2 million. It is trading at about 21.5X revenue. Quite impressive but perhaps not sustainable.

Investors looking for a more established and profitable cleantech company in the heat recovery space, may find exceptional value in Thermal Energy International, which is listed on the TSX Venture Exchange under the symbol TMG.

On Monday, January 23, 2017, Ottawa-based cleantech company, Thermal Energy International (TSX-V: TMG) reported its financial results for the second quarter and six months ended November 30, 2016. While revenue was up for both the quarter and year-to-date, most striking were the significant increases in gross profit, EBITDAS and net income.
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Gross profit increased 19% for the second quarter and 25% for the year-to-date. The Company also had strong improvements to EBITDAS, net income and adjusted cash flow. Year-to-date EBITDAS, net income and adjusted cash flow increased $606 thousand, $522 thousand and $446 thousand respectively.

Thermal Energy International currently (as at January 26, 2017) has a market cap of approximately $15.9 million, trading at about 1.27X revenue for the last twelve months, or 1.28X revenue for its most recent fiscal year. Again, this company is profitable. Moreover, it has a seven-year revenue CAGR of about 17%.

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