Analyzing Deswell Industries (DSWL) and Entegris (ENTG)

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

Dividends

Deswell Industries pays an annual dividend of $0.12 per share and has a dividend yield of 4.0%. Entegris pays an annual dividend of $0.28 per share and has a dividend yield of 0.9%. Entegris pays out 19.4% of its earnings in the form of a dividend. Deswell Industries has raised its dividend for 7 consecutive years. Deswell Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

4.8% of Deswell Industries shares are owned by institutional investors. Comparatively, 94.5% of Entegris shares are owned by institutional investors. 39.0% of Deswell Industries shares are owned by company insiders. Comparatively, 1.2% of Entegris shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Deswell Industries and Entegris, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deswell Industries 0 0 0 0 N/A
Entegris 0 1 9 0 2.90

Entegris has a consensus target price of $40.30, suggesting a potential upside of 34.15%. Given Entegris’ higher possible upside, analysts clearly believe Entegris is more favorable than Deswell Industries.

Volatility & Risk

Deswell Industries has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Entegris has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Profitability

This table compares Deswell Industries and Entegris’ 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
Entegris 8.78% 25.34% 12.98%

Valuation and Earnings

This table compares Deswell Industries and Entegris’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Deswell Industries $60.67 million 0.79 $6.19 million N/A N/A
Entegris $1.34 billion 3.16 $85.06 million $1.44 20.86

Entegris has higher revenue and earnings than Deswell Industries.

Summary

Entegris beats Deswell Industries on 10 of the 14 factors compared between the two stocks.

Deswell Industries Company Profile

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. It produces a range of plastic parts and components that are used in the manufacture of consumer and industrial products, which include plastic components of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors, and alarm clocks; toner cartridges and cases for photocopy and printer machines; and parts for electrical products, such as air-conditioning and ventilators, as well as parts for audio equipment and cases, and key tops for personal organizers and remote controls; double injection caps and baby products; parts for medical products comprising apparatus for blood tests; laser key caps; and automobile components. In addition, it provides electronic products that consist of audio equipment, including digital audio workstations, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers, and speaker enclosures; home theatre audio products, such as 7.1-channel audio-visual Hi-Fi stereo receivers-amplifiers; printed circuit board assemblies; and telecommunication products comprising VoIP keysets for business communications. The company sells its products primarily in the People's Republic of China, the United States, the United Kingdom, Norway, Holland, Hong Kong, and Canada. Deswell Industries, Inc. was founded in 1987 and is based in Macau.

Entegris Company Profile

Entegris, Inc. develops, manufactures, and supplies microcontamination control products, specialty chemicals, and advanced materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries worldwide. It operates through three segments: Specialty Chemicals and Engineered Materials (SCEM), Microcontamination Control (MC), and Advanced Materials Handling (AMH). The SCEM segment provides high-performance and high-purity process chemistries, gases, and materials, as well as delivery systems to support semiconductor and other advanced manufacturing processes. The MC segment offers solutions to purify critical liquid chemistries and gases for use in semiconductor manufacturing processes and other high-technology industries. The AMH segment develops solutions to monitor, protect, transport, and deliver critical liquid chemistries, wafers, and other substrates for a broad set of applications in the semiconductor industry and other high-technology industries. The company's customers include semiconductor device manufacturers, semiconductor equipment makers, gas and chemical manufacturing companies, wafer grower companies, and manufacturers of high-precision electronics; flat panel display equipment makers, materials suppliers and panel manufacturers, and manufacturers of hard disk drive components and devices; and manufacturers and suppliers in the solar and life science industries, electrical discharge machining customers, glass and glass container manufacturers, aerospace manufacturers, and manufacturers of biomedical implantation devices. Entegris, Inc. was founded in 1966 and is headquartered in Billerica, Massachusetts.

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