WallStSmart

Deswell Industries Inc (DSWL)vsZepp Health Corp (ZEPP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Zepp Health Corp generates 294% more annual revenue ($258.90M vs $65.66M). DSWL leads profitability with a 19.0% profit margin vs -15.5%. DSWL earns a higher WallStSmart Score of 62/100 (C+).

DSWL

Buy

62

out of 100

Grade: C+

Growth: 4.0Profit: 6.0Value: 9.3Quality: 7.8
Piotroski: 5/9Altman Z: 5.25

ZEPP

Hold

41

out of 100

Grade: D

Growth: 4.7Profit: 2.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DSWLUndervalued (+34.8%)

Margin of Safety

+34.8%

Fair Value

$5.52

Current Price

$3.41

$2.11 discount

UndervaluedFair: $5.52Overvalued
ZEPPUndervalued (+48.6%)

Margin of Safety

+48.6%

Fair Value

$46.70

Current Price

$17.47

$29.23 discount

UndervaluedFair: $46.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DSWL5 strengths · Avg: 9.2/10
P/E RatioValuation
4.3x10/10

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

EPS GrowthGrowth
21.1%8/10

Earnings expanding 21.1% YoY

ZEPP2 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
43.0%10/10

Revenue surging 43.0% year-over-year

Areas to Watch

DSWL2 concerns · Avg: 2.5/10
Market CapQuality
$53.06M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-5.5%2/10

Revenue declined 5.5%

ZEPP4 concerns · Avg: 2.0/10
Market CapQuality
$247.54M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-17.2%2/10

ROE of -17.2% — below average capital efficiency

EPS GrowthGrowth
-68.1%2/10

Earnings declined 68.1%

Profit MarginProfitability
-15.5%1/10

Currently unprofitable

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 19.0% and operating margin at 7.5%. PEG of 0.89 suggests the stock is reasonably priced for its growth.

Bull Case : ZEPP

The strongest argument for ZEPP centers on Price/Book, Revenue Growth. Revenue growth of 43.0% demonstrates continued momentum.

Bear Case : DSWL

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

Bear Case : ZEPP

The primary concerns for ZEPP are Market Cap, Return on Equity, EPS Growth.

Key Dynamics to Monitor

DSWL profiles as a declining stock while ZEPP is a hypergrowth play — different risk/reward profiles.

ZEPP carries more volatility with a beta of 1.77 — expect wider price swings.

ZEPP is growing revenue faster at 43.0% — sustainability is the question.

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

Bottom Line

DSWL scores higher overall (62/100 vs 41/100), backed by strong 19.0% margins. ZEPP offers better value entry with a 48.6% margin of safety. Both earn "Buy" and "Hold" 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.

Zepp Health Corp

TECHNOLOGY · CONSUMER ELECTRONICS · China

Zepp Health Corporation, an activity and biometric data-driven company, develops, manufactures and sells smart wearable technology devices in the People's Republic of China. The company is headquartered in Hefei, the People's Republic of China.

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