Analyzing Deswell Industries (DSWL) and The Competition

Deswell Industries (NASDAQ:DSWL) is one of 56 publicly-traded companies in the “ELEC – MISC COMPONENTS” industry, but how does it contrast to its competitors? We will compare Deswell Industries to related businesses based on the strength of its dividends, profitability, valuation, earnings, analyst recommendations, institutional ownership and risk.

Institutional and Insider Ownership

61.3% of shares of all “ELEC – MISC COMPONENTS” companies are owned by institutional investors. 39.0% of Deswell Industries shares are owned by insiders. Comparatively, 14.8% of shares of all “ELEC – MISC COMPONENTS” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Deswell Industries and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Deswell Industries	$67.61 million	$11.14 million	7.20
Deswell Industries Competitors	$2.50 billion	$168.84 million	13.62

Deswell Industries’ competitors have higher revenue and earnings than Deswell Industries. Deswell Industries is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Deswell Industries and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deswell Industries	N/A	N/A	N/A
Deswell Industries Competitors	3.38%	-10.11%	1.78%

Volatility and Risk

Deswell Industries has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Deswell Industries’ competitors have a beta of 0.85, indicating that their average stock price is 15% less volatile than the S&P 500.

Dividends

Deswell Industries pays an annual dividend of $0.20 per share and has a dividend yield of 5.8%. Deswell Industries pays out 41.7% of its earnings in the form of a dividend. As a group, “ELEC – MISC COMPONENTS” companies pay a dividend yield of 1.2% and pay out 40.6% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Deswell Industries and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deswell Industries	0	0	1	0	3.00
Deswell Industries Competitors	116	1320	1653	125	2.56

As a group, “ELEC – MISC COMPONENTS” companies have a potential downside of 3.98%. Given Deswell Industries’ competitors higher probable upside, analysts plainly believe Deswell Industries has less favorable growth aspects than its competitors.

Summary

Deswell Industries competitors beat Deswell Industries on 10 of the 15 factors compared.

About Deswell Industries

Deswell Industries, Inc. manufactures and sells injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers in China, the United States, Europe, Hong Kong, the United Kingdom, Canada, and internationally. It operates through two segments, Plastic Injection Molding and Electronic Products Assembling. The company produces a range of plastic parts and components that are used in the manufacture of consumer and industrial products, which include plastic components for electronic entertainment products, power tools, accessories, and outdoor equipment; cases for flashlights, telephones, printers, scanners; parts for industrial components, and indoor control switches, as well as parts for audio equipment, and cases and key tops for personal organizers and remote controls; double injection caps; parts for medical products comprising apparatus for blood tests; laser key caps; automobile components; and plastic components of automatic robot. It also provides electronic products that consist of audio equipment, including digital and analogue audio mixers, amplifiers, signal processors, audio interfaces, network audio equipment, and speaker enclosures; consumer audio products, such as multi-channel receivers-amplifiers, wired and wireless audio streaming products, and headphones; printed circuit board assemblies; and medical products. The company was founded in 1987 and is based in Macau.