WallStSmart

Deswell Industries Inc (DSWL)vsFlex Ltd (FLEX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Flex Ltd generates 45413% more annual revenue ($27.91B vs $61.33M). DSWL leads profitability with a 17.3% profit margin vs 3.1%. DSWL appears more attractively valued with a PEG of 0.89. FLEX earns a higher WallStSmart Score of 60/100 (C).

DSWL

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 5.5Value: 6.7Quality: 7.3
Piotroski: 3/9Altman Z: 5.01

FLEX

Buy

60

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 5.0Quality: 6.0
Piotroski: 4/9Altman Z: 2.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DSWLSignificantly Overvalued (-44.0%)

Margin of Safety

-44.0%

Fair Value

$2.50

Current Price

$3.46

$0.96 premium

UndervaluedFair: $2.50Overvalued

Intrinsic value data unavailable for FLEX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DSWL4 strengths · Avg: 9.5/10
P/E RatioValuation
5.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
5.0110/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.898/10

Growing faster than its price suggests

FLEX3 strengths · Avg: 8.3/10
Market CapQuality
$55.22B9/10

Large-cap with strong market position

PEG RatioValuation
0.948/10

Growing faster than its price suggests

Revenue GrowthGrowth
16.9%8/10

16.9% revenue growth

Areas to Watch

DSWL4 concerns · Avg: 2.5/10
Market CapQuality
$59.89M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-13.4%2/10

Revenue declined 13.4%

EPS GrowthGrowth
-37.0%2/10

Earnings declined 37.0%

FLEX3 concerns · Avg: 3.0/10
Price/BookValuation
9.9x4/10

Trading at 9.9x book value

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

P/E RatioValuation
64.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : DSWL

The strongest argument for DSWL centers on P/E Ratio, Price/Book, Altman Z-Score. Profitability is solid with margins at 17.3% and operating margin at -1.8%. PEG of 0.89 suggests the stock is reasonably priced for its growth.

Bull Case : FLEX

The strongest argument for FLEX centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 16.9% demonstrates continued momentum. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bear Case : DSWL

The primary concerns for DSWL are Market Cap, Piotroski F-Score, Revenue Growth.

Bear Case : FLEX

The primary concerns for FLEX are Price/Book, Profit Margin, P/E Ratio. A P/E of 64.4x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

DSWL profiles as a declining stock while FLEX is a growth play — different risk/reward profiles.

FLEX carries more volatility with a beta of 1.64 — expect wider price swings.

FLEX is growing revenue faster at 16.9% — sustainability is the question.

FLEX generates stronger free cash flow (211M), providing more financial flexibility.

Bottom Line

FLEX scores higher overall (60/100 vs 52/100) and 16.9% revenue growth. 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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