WallStSmart

Deswell Industries Inc (DSWL)vsFlex Ltd (FLEX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Flex Ltd generates 39591% more annual revenue ($26.83B vs $67.61M). DSWL leads profitability with a 16.5% profit margin vs 3.2%. DSWL appears more attractively valued with a PEG of 0.89. DSWL earns a higher WallStSmart Score of 61/100 (C+).

DSWL

Buy

61

out of 100

Grade: C+

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

FLEX

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 7.3Quality: 7.0
Piotroski: 4/9Altman Z: 2.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DSWLUndervalued (+86.3%)

Margin of Safety

+86.3%

Fair Value

$26.38

Current Price

$3.26

$23.12 discount

UndervaluedFair: $26.38Overvalued
FLEXSignificantly Overvalued (-327.7%)

Margin of Safety

-327.7%

Fair Value

$15.16

Current Price

$70.02

$54.86 premium

UndervaluedFair: $15.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

FLEX1 strengths · Avg: 8.0/10
PEG RatioValuation
0.948/10

Growing faster than its price suggests

Areas to Watch

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%

FLEX4 concerns · Avg: 3.0/10
P/E RatioValuation
31.0x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Debt/EquityHealth
1.093/10

Elevated debt levels

EPS GrowthGrowth
-4.5%2/10

Earnings declined 4.5%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : FLEX

The strongest argument for FLEX centers on PEG Ratio. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bear Case : DSWL

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

Bear Case : FLEX

The primary concerns for FLEX are P/E Ratio, Profit Margin, Debt/Equity. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

FLEX carries more volatility with a beta of 1.25 — expect wider price swings.

FLEX is growing revenue faster at 7.7% — sustainability is the question.

FLEX generates stronger free cash flow (272M), providing more financial flexibility.

Monitor ELECTRONIC COMPONENTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DSWL scores higher overall (61/100 vs 57/100), backed by strong 16.5% margins. Both earn "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.

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.

Flex Ltd

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Flex Ltd. provides design, engineering, manufacturing and supply chain services and solutions to OEMs in Asia, the Americas and Europe. The company is headquartered in Singapore.

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