CPS Technologies Corp. (CPSH) vs Deswell Industries, Inc. (DSWL)

CPS Technologies Corp. and Deswell Industries, Inc. are both Electronic Components companies. CPS Technologies Corp. is the larger, with a market value of $75.0M against $49.8M — 1.5× the size. CPS Technologies Corp. has negative trailing earnings, so its P/E is not meaningful; Deswell Industries, Inc. trades at 5.3×. CPS Technologies Corp. grew revenue faster over the last twelve months: 25.6% against 21.7%. Deswell Industries, Inc. has the higher net margin (6.01% vs −0.11%) and the higher return on invested capital (0.00% vs −2.60%). Across the 18 metrics below, Deswell Industries, Inc. leads on 14 and CPS Technologies Corp. on 4.

Valuation

Metric CPSH DSWL Electronic Components median
P/E n/m 5.25 39.06
P/S 2.20 0.31 3.22
P/B 2.11 0.46 3.30
Price to free cash flow n/m 2.56 26.65
EV/EBITDA n/m n/m 19.69
EV/Sales 1.61 (0.19) 3.53
Earnings yield (0.10%) 19.03% 1.34%
Free cash flow yield (3.90%) 39.00% 0.40%

Profitability

Metric CPSH DSWL Electronic Components median
Gross margin 14.09% 17.23% 33.21%
Operating margin (1.87%) 0.00% 3.53%
Net margin (0.11%) 6.01% 2.57%
Free cash flow margin (8.57%) 0.00% 0.20%
Return on equity (0.15%) 0.00% 2.60%
Return on assets (0.12%) 0.00% 2.50%
Return on invested capital (2.60%) 0.00% 2.28%

Growth

Metric CPSH DSWL Electronic Components median
Revenue growth (TTM) 25.56% 21.66% 12.01%
EPS growth (last fiscal year) 113.64% (4.29%) —
Revenue growth, 5-year CAGR 9.32% (1.12%) 7.19%
Net income growth, 5-year CAGR (14.28%) 5.24% 0.00%

Health

Metric CPSH DSWL Electronic Components median
Debt to equity 0.00 0.00 0.16
Current ratio 7.14 5.28 2.41
Net debt to EBITDA (12.66) (23.76) 0.32

Dividend

Metric CPSH DSWL Electronic Components median
Dividend yield — 8.47% 1.18%
Payout ratio 0.00 1.54 0.00

Size

Metric CPSH DSWL Electronic Components median
Market cap 75.03m 49.75m 780.25m

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