Reviewing Deswell Industries (NASDAQ:DSWL) & Littelfuse (NASDAQ:LFUS)

Deswell Industries (NASDAQ:DSWL) and Littelfuse (NASDAQ:LFUS) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Volatility & Risk

Deswell Industries has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Littelfuse has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Deswell Industries and Littelfuse, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deswell Industries	0	0	1	0	3.00
Littelfuse	0	3	2	1	2.67

Littelfuse has a consensus target price of $292.50, indicating a potential upside of 8.62%. Given Littelfuse’s higher probable upside, analysts plainly believe Littelfuse is more favorable than Deswell Industries.

Earnings and Valuation

This table compares Deswell Industries and Littelfuse”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deswell Industries	$67.61 million	0.82	$11.14 million	N/A	N/A
Littelfuse	$2.19 billion	3.05	$100.19 million	$4.80	56.10

Littelfuse has higher revenue and earnings than Deswell Industries.

Dividends

Deswell Industries pays an annual dividend of $0.20 per share and has a dividend yield of 5.8%. Littelfuse pays an annual dividend of $3.00 per share and has a dividend yield of 1.1%. Littelfuse pays out 62.5% of its earnings in the form of a dividend. Littelfuse has raised its dividend for 15 consecutive years.

Profitability

This table compares Deswell Industries and Littelfuse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deswell Industries	N/A	N/A	N/A
Littelfuse	5.30%	9.74%	6.15%

Insider and Institutional Ownership

96.1% of Littelfuse shares are held by institutional investors. 39.0% of Deswell Industries shares are held by insiders. Comparatively, 2.5% of Littelfuse shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Littelfuse beats Deswell Industries on 12 of the 16 factors compared between the two stocks.

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.

About Littelfuse

Littelfuse, Inc. designs, manufactures, and sells electronic components, modules, and subassemblies in the Americas, Asia-Pacific, and Europe. The company operates through Electronic, Transportation, and Industrial segments. The Electronics segment offers fuses and fuse accessories, positive temperature coefficient resettable fuses, electromechanical switches and interconnect solutions, polymer electrostatic discharge suppressors, varistors, reed switch based magnetic sensing products, and gas discharge tubes; and discrete transient voltage suppressor (TVS) diodes, TVS diode arrays, protection and switching thyristors, metal-oxide-semiconductor field-effect transistors and diodes, and insulated gate bipolar transistors. This segment serves industrial motor drives and power conversion, automotive electronics, electric vehicle and related charging infrastructure, aerospace, power supplies, data centers, telecommunications, medical devices, alternative energy, building and home automation, appliances, and mobile electronics markets. The Transportation segment provides blade, resettable, and high-current and high-voltage fuses, as well as battery cable protectors; fuses, switches, relays, circuit breakers, and power distribution modules; and sensor products. This segment serves heavy-duty truck, construction, agriculture, material handling, and marine. The Industrial segment offers industrial fuses, protection relays, contactors, transformers, residual current devices, ground fault circuit interrupters, residual current monitors, arc fault detection devices, and temperature sensors for use in renewable energy and energy storage systems, electric vehicle infrastructure, HVAC systems, industrial safety, non-residential construction, MRO, mining, and factory automation. It sells its products through distributors, direct sales force, and manufacturers' representatives. Littelfuse, Inc. was founded in 1927 and is headquartered in Chicago, Illinois.