Deswell Industries (NASDAQ:DSWL) and Riskgeorge In (OTCMKTS:RSKIA) Financial Analysis

Riskgeorge In (OTCMKTS:RSKIA) and Deswell Industries (NASDAQ:DSWL) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Riskgeorge In and Deswell Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riskgeorge In	38.22%	15.63%	13.86%
Deswell Industries	N/A	N/A	N/A

Institutional & Insider Ownership

0.1% of Riskgeorge In shares are held by institutional investors. 39.0% of Deswell Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Riskgeorge In pays an annual dividend of $1.00 per share and has a dividend yield of 5.5%. Deswell Industries pays an annual dividend of $0.20 per share and has a dividend yield of 5.9%. Riskgeorge In pays out 53.2% of its earnings in the form of a dividend. Deswell Industries pays out 41.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Deswell Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Riskgeorge In and Deswell Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riskgeorge In	$22.54 million	3.97	$7.13 million	$1.88	9.73
Deswell Industries	$67.61 million	0.80	$11.14 million	$0.48	7.08

Deswell Industries has higher revenue and earnings than Riskgeorge In. Deswell Industries is trading at a lower price-to-earnings ratio than Riskgeorge In, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Riskgeorge In has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Deswell Industries has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Riskgeorge In and Deswell Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riskgeorge In	0	0	0	0	0.00
Deswell Industries	0	0	1	0	3.00

Summary

Deswell Industries beats Riskgeorge In on 8 of the 15 factors compared between the two stocks.

About Riskgeorge In

George Risk Industries, Inc. designs, manufactures, and sells various electronic components worldwide. It operates in three segments: security line products, cable and wiring tools (Labor Saving Devices – LSDI) products, and all other products. The company offers computer keyboards, proximity switches, security alarm components and systems, pool access alarms, EZ Duct wire covers, water sensors, electronic switching devices, security switches, and wire and cable installation tools, as well as door and window contact switches, environmental products, liquid detection sensors, and raceway wire covers. Its products are used for residential, commercial, industrial, and government installations. The company serves security alarm distributors, alarm installers, original equipment manufacturers, and distributors of off-the-shelf keyboards. George Risk Industries, Inc. was incorporated in 1961 and is based in Kimball, Nebraska.

About Deswell Industries

Deswell Industries, Inc. manufactures and sells injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers in China, the United States, Europe, Hong Kong, the United Kingdom, Canada, and internationally. It operates through two segments, Plastic Injection Molding and Electronic Products Assembling. The company produces a range of plastic parts and components that are used in the manufacture of consumer and industrial products, which include plastic components for electronic entertainment products, power tools, accessories, and outdoor equipment; cases for flashlights, telephones, printers, scanners; parts for industrial components, and indoor control switches, as well as parts for audio equipment, and cases and key tops for personal organizers and remote controls; double injection caps; parts for medical products comprising apparatus for blood tests; laser key caps; automobile components; and plastic components of automatic robot. It also provides electronic products that consist of audio equipment, including digital and analogue audio mixers, amplifiers, signal processors, audio interfaces, network audio equipment, and speaker enclosures; consumer audio products, such as multi-channel receivers-amplifiers, wired and wireless audio streaming products, and headphones; printed circuit board assemblies; and medical products. The company was founded in 1987 and is based in Macau.