Deswell Industries, Inc. (DSWL) vs Eltek Ltd. (ELTK)

Deswell Industries, Inc. and Eltek Ltd. are both Electronic Components companies. Deswell Industries, Inc. and Eltek Ltd. are of similar size ($54.6M and $49.8M). Eltek Ltd. has negative trailing earnings, so its P/E is not meaningful; Deswell Industries, Inc. trades at 5.3×. Deswell Industries, Inc. grew revenue faster over the last twelve months: 21.7% against −2.20%. Deswell Industries, Inc. has the higher net margin (6.01% vs −12.7%) and the higher return on invested capital (0.00% vs −10.7%). Both pay a dividend; Deswell Industries, Inc. yields more (8.47% vs 1.26%). Across the 19 metrics below, Deswell Industries, Inc. leads on 17 and Eltek Ltd. on 2.

Valuation

Metric DSWL ELTK Electronic Components median
P/E 5.25 n/m 39.06
P/S 0.31 1.15 3.22
P/B 0.46 1.26 3.30
Price to free cash flow 2.56 n/m 26.65
EV/EBITDA n/m n/m 19.69
EV/Sales (0.19) 1.05 3.53
Earnings yield 19.03% (10.96%) 1.34%
Free cash flow yield 39.00% (11.60%) 0.40%

Profitability

Metric DSWL ELTK Electronic Components median
Gross margin 17.23% (0.13%) 33.21%
Operating margin 0.00% (11.65%) 3.53%
Net margin 6.01% (12.66%) 2.57%
Free cash flow margin 0.00% 0.20% 0.20%
Return on equity 0.00% (13.79%) 2.60%
Return on assets 0.00% (8.92%) 2.50%
Return on invested capital 0.00% (10.74%) 2.28%

Growth

Metric DSWL ELTK Electronic Components median
Revenue growth (TTM) 21.66% (2.20%) 12.01%
EPS growth (last fiscal year) (4.29%) (80.95%) —
Revenue growth, 5-year CAGR (1.12%) 7.13% 7.19%
Net income growth, 5-year CAGR 5.24% (20.54%) 0.00%

Health

Metric DSWL ELTK Electronic Components median
Debt to equity 0.00 0.00 0.16
Current ratio 5.28 2.15 2.41
Net debt to EBITDA (23.76) (2.72) 0.32

Dividend

Metric DSWL ELTK Electronic Components median
Dividend yield 8.47% 1.26% 1.18%
Payout ratio 1.54 0.21 0.00

Size

Metric DSWL ELTK Electronic Components median
Market cap 49.75m 54.57m 780.25m

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