Deswell Industries, Inc. (DSWL) vs Research Frontiers Incorporated (REFR)

Deswell Industries, Inc. and Research Frontiers Incorporated are both Electronic Components companies. Deswell Industries, Inc. is the larger, with a market value of $49.8M against $26.2M — 1.9× the size. Research Frontiers Incorporated 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 −46.5%. Deswell Industries, Inc. has the higher net margin (6.01% vs −343.9%) and the higher return on invested capital (0.00% vs −4,055.6%). Across the 18 metrics below, Deswell Industries, Inc. leads on 17 and Research Frontiers Incorporated on 1.

Valuation

Metric DSWL REFR Electronic Components median
P/E 5.25 n/m 39.06
P/S 0.31 42.11 3.22
P/B 0.46 24.53 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) 40.45 3.53
Earnings yield 19.03% (8.28%) 1.34%
Free cash flow yield 39.00% (5.67%) 0.40%

Profitability

Metric DSWL REFR Electronic Components median
Gross margin 17.23% (263.98%) 33.21%
Operating margin 0.00% (348.20%) 3.53%
Net margin 6.01% (343.94%) 2.57%
Free cash flow margin 0.00% (238.69%) 0.20%
Return on equity 0.00% (154.03%) 2.60%
Return on assets 0.00% (79.66%) 2.50%
Return on invested capital 0.00% (4,055.56%) 2.28%

Growth

Metric DSWL REFR Electronic Components median
Revenue growth (TTM) 21.66% (46.49%) 12.01%
EPS growth (last fiscal year) (4.29%) (50.00%) —
Revenue growth, 5-year CAGR (1.12%) 6.24% 7.19%
Net income growth, 5-year CAGR 5.24% 0.00% 0.00%

Health

Metric DSWL REFR Electronic Components median
Debt to equity 0.00 0.00 0.16
Current ratio 5.28 3.54 2.41
Net debt to EBITDA (23.76) 0.34 0.32

Dividend

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

Size

Metric DSWL REFR Electronic Components median
Market cap 49.75m 26.15m 780.25m

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