Deswell Industries, Inc. (DSWL) vs Wetouch Technology Inc. (WETH)

Deswell Industries, Inc. and Wetouch Technology Inc. are both Electronic Components companies. Deswell Industries, Inc. is the larger, with a market value of $47.0M against $10.2M — 4.6× the size. Wetouch Technology Inc. trades at the lower P/E: 1.1× against 5.1×. Deswell Industries, Inc. grew revenue faster over the last twelve months: 21.7% against 11.3%. Wetouch Technology Inc. has the higher net margin (17.6% vs 6.01%) and the higher return on invested capital (32.8% vs 0.00%). Both pay a dividend; Deswell Industries, Inc. yields more (6.69% vs 5.19%). Across the 19 metrics below, Wetouch Technology Inc. leads on 16 and Deswell Industries, Inc. on 3.

Valuation

Metric DSWL WETH Electronic Components median
P/E 5.07 1.11 24.82
P/S 0.30 0.20 2.28
P/B 0.44 0.06 2.86
Price to free cash flow 6.08 1.23 22.99
EV/EBITDA n/m n/m 14.69
EV/Sales (0.20) (2.46) 2.38
Earnings yield 19.73% 90.34% 2.68%
Free cash flow yield 16.46% 81.52% 1.70%

Profitability

Metric DSWL WETH Electronic Components median
Gross margin 17.23% 32.10% 32.78%
Operating margin 0.00% 23.38% 4.90%
Net margin 6.01% 17.57% 3.46%
Free cash flow margin 0.00% 17.14% 1.66%
Return on equity 0.00% 5.98% 5.59%
Return on assets 0.00% 5.79% 4.13%
Return on invested capital 0.00% 32.84% 4.66%

Growth

Metric DSWL WETH Electronic Components median
Revenue growth (TTM) 21.66% 11.34% 13.94%
EPS growth (last fiscal year) (4.29%) 15.38% 35.44%
Revenue growth, 5-year CAGR (1.12%) — 6.70%
Net income growth, 5-year CAGR 5.24% — 7.53%

Health

Metric DSWL WETH Electronic Components median
Debt to equity 0.00 0.00 0.11
Current ratio 5.28 35.99 2.50
Net debt to EBITDA (23.76) (11.85) 0.41

Dividend

Metric DSWL WETH Electronic Components median
Dividend yield 6.69% 5.19% 1.10%
Payout ratio — 0.06 0.28

Size

Metric DSWL WETH Electronic Components median
Market cap 47.02m 10.17m 1.16b

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