Deswell Industries Inc (DSWL)vsFlex Ltd (FLEX)
DSWL
Deswell Industries Inc
$3.26
+1.87%
TECHNOLOGY · Cap: $55.93M
FLEX
Flex Ltd
$70.02
+1.34%
TECHNOLOGY · Cap: $25.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Flex Ltd generates 39591% more annual revenue ($26.83B vs $67.61M). DSWL leads profitability with a 16.5% profit margin vs 3.2%. DSWL appears more attractively valued with a PEG of 0.89. DSWL earns a higher WallStSmart Score of 61/100 (C+).
DSWL
Buy61
out of 100
Grade: C+
FLEX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+86.3%
Fair Value
$26.38
Current Price
$3.26
$23.12 discount
Margin of Safety
-327.7%
Fair Value
$15.16
Current Price
$70.02
$54.86 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Growing faster than its price suggests
Areas to Watch
2.5% revenue growth
Smaller company, higher risk/reward
Operating margin of 4.2%
Premium valuation, high expectations priced in
3.2% margin — thin
Elevated debt levels
Earnings declined 4.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : DSWL
The strongest argument for DSWL centers on P/E Ratio, Price/Book, Altman Z-Score. Profitability is solid with margins at 16.5% and operating margin at 4.2%. PEG of 0.89 suggests the stock is reasonably priced for its growth.
Bull Case : FLEX
The strongest argument for FLEX centers on PEG Ratio. PEG of 0.94 suggests the stock is reasonably priced for its growth.
Bear Case : DSWL
The primary concerns for DSWL are Revenue Growth, Market Cap, Operating Margin.
Bear Case : FLEX
The primary concerns for FLEX are P/E Ratio, Profit Margin, Debt/Equity. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
FLEX carries more volatility with a beta of 1.25 — expect wider price swings.
FLEX is growing revenue faster at 7.7% — sustainability is the question.
FLEX generates stronger free cash flow (272M), providing more financial flexibility.
Monitor ELECTRONIC COMPONENTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DSWL scores higher overall (61/100 vs 57/100), backed by strong 16.5% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Deswell Industries Inc
TECHNOLOGY · ELECTRONIC COMPONENTS · China
Deswell Industries, Inc. manufactures and sells injection molded plastic parts and components, electronic products and sub-assemblies, and metal molds and accessory parts to original equipment manufacturers and contractors. The company is headquartered in Macau.
Flex Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
Flex Ltd. provides design, engineering, manufacturing and supply chain services and solutions to OEMs in Asia, the Americas and Europe. The company is headquartered in Singapore.
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