WallStSmart

Celestica Inc. (CLS)vsDeswell Industries Inc (DSWL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Celestica Inc. generates 18227% more annual revenue ($12.39B vs $67.61M). DSWL leads profitability with a 16.5% profit margin vs 6.7%. DSWL appears more attractively valued with a PEG of 0.89. CLS earns a higher WallStSmart Score of 68/100 (B-).

CLS

Strong Buy

68

out of 100

Grade: B-

Growth: 10.0Profit: 7.0Value: 8.7Quality: 5.0
Piotroski: 5/9

DSWL

Buy

61

out of 100

Grade: C+

Growth: 4.7Profit: 5.5Value: 10.0Quality: 7.8
Piotroski: 5/9Altman Z: 5.25
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CLSUndervalued (+11.6%)

Margin of Safety

+11.6%

Fair Value

$334.62

Current Price

$302.22

$32.40 discount

UndervaluedFair: $334.62Overvalued
DSWLUndervalued (+86.3%)

Margin of Safety

+86.3%

Fair Value

$26.38

Current Price

$3.26

$23.12 discount

UndervaluedFair: $26.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CLS4 strengths · Avg: 9.5/10
Return on EquityProfitability
40.5%10/10

Every $100 of equity generates 41 in profit

Revenue GrowthGrowth
43.6%10/10

Revenue surging 43.6% year-over-year

EPS GrowthGrowth
77.7%10/10

Earnings expanding 77.7% YoY

PEG RatioValuation
1.008/10

Growing faster than its price suggests

DSWL4 strengths · Avg: 9.5/10
P/E RatioValuation
5.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
5.2510/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.898/10

Growing faster than its price suggests

Areas to Watch

CLS3 concerns · Avg: 3.0/10
Price/BookValuation
15.7x4/10

Trading at 15.7x book value

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

P/E RatioValuation
42.2x2/10

Premium valuation, high expectations priced in

DSWL3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.5%4/10

2.5% revenue growth

Market CapQuality
$55.93M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : CLS

The strongest argument for CLS centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 43.6% demonstrates continued momentum. PEG of 1.00 suggests the stock is reasonably priced for its growth.

Bull Case : DSWL

The strongest argument for DSWL centers on P/E Ratio, Price/Book, Altman Z-Score. Profitability is solid with margins at 16.5% and operating margin at 4.2%. PEG of 0.89 suggests the stock is reasonably priced for its growth.

Bear Case : CLS

The primary concerns for CLS are Price/Book, Profit Margin, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.

Bear Case : DSWL

The primary concerns for DSWL are Revenue Growth, Market Cap, Operating Margin.

Key Dynamics to Monitor

CLS profiles as a hypergrowth stock while DSWL is a value play — different risk/reward profiles.

CLS carries more volatility with a beta of 1.38 — expect wider price swings.

CLS is growing revenue faster at 43.6% — sustainability is the question.

CLS generates stronger free cash flow (158M), providing more financial flexibility.

Bottom Line

CLS scores higher overall (68/100 vs 61/100) and 43.6% revenue growth. DSWL offers better value entry with a 86.3% margin of safety. Both earn "Strong 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.

Celestica Inc.

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Celestica Inc. provides hardware platforms and supply chain solutions in North America, Europe, and Asia. The company is headquartered in Toronto, Canada.

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.

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