WallStSmart

Deswell Industries Inc (DSWL)vsTE Connectivity Ltd (TEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TE Connectivity Ltd generates 26664% more annual revenue ($18.09B vs $67.61M). DSWL leads profitability with a 16.5% profit margin vs 11.4%. DSWL appears more attractively valued with a PEG of 0.89. TEL earns a higher WallStSmart Score of 74/100 (B).

DSWL

Buy

61

out of 100

Grade: C+

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

TEL

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 9.3Quality: 5.0
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
TELUndervalued (+29.8%)

Margin of Safety

+29.8%

Fair Value

$325.26

Current Price

$206.37

$118.89 discount

UndervaluedFair: $325.26Overvalued

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

TEL4 strengths · Avg: 8.3/10
Market CapQuality
$60.58B9/10

Large-cap with strong market position

Operating MarginProfitability
20.9%8/10

Strong operational efficiency at 20.9%

Revenue GrowthGrowth
21.7%8/10

Revenue surging 21.7% year-over-year

EPS GrowthGrowth
44.4%8/10

Earnings expanding 44.4% YoY

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%

TEL1 concerns · Avg: 4.0/10
P/E RatioValuation
29.7x4/10

Moderate valuation

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 : TEL

The strongest argument for TEL centers on Market Cap, Operating Margin, Revenue Growth. Revenue growth of 21.7% demonstrates continued momentum. PEG of 1.14 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 : TEL

The primary concerns for TEL are P/E Ratio.

Key Dynamics to Monitor

DSWL profiles as a value stock while TEL is a growth play — different risk/reward profiles.

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

TEL is growing revenue faster at 21.7% — sustainability is the question.

TEL generates stronger free cash flow (607M), providing more financial flexibility.

Bottom Line

TEL scores higher overall (74/100 vs 61/100) and 21.7% 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.

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.

TE Connectivity Ltd

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.

Want to dig deeper into these stocks?