Critical Contrast: Deswell Industries (DSWL) versus Armstrong World Industries (AWI)

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

Dividends

Deswell Industries pays an annual dividend of $0.08 per share and has a dividend yield of 2.4%. Armstrong World Industries does not pay a dividend. Deswell Industries has increased its dividend for 6 consecutive years.



Earnings and Valuation

This table compares Deswell Industries and Armstrong World Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Deswell Industries $60.67 million 0.86 $6.19 million N/A N/A
Armstrong World Industries $893.60 million 3.53 $154.80 million $3.02 20.25

Armstrong World Industries has higher revenue and earnings than Deswell Industries.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Deswell Industries and Armstrong World Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deswell Industries 0 0 0 0 N/A
Armstrong World Industries 1 4 2 0 2.14

Armstrong World Industries has a consensus price target of $68.00, suggesting a potential upside of 11.79%. Given Armstrong World Industries’ higher possible upside, analysts clearly believe Armstrong World Industries is more favorable than Deswell Industries.

Volatility & Risk

Deswell Industries has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Armstrong World Industries has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.

Institutional & Insider Ownership

4.9% of Deswell Industries shares are owned by institutional investors. 39.0% of Deswell Industries shares are owned by insiders. Comparatively, 1.9% of Armstrong World Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Deswell Industries and Armstrong World Industries’ 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
Armstrong World Industries 15.18% 41.92% 9.08%

Summary

Armstrong World Industries beats Deswell Industries on 9 of the 13 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. 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.

About Armstrong World Industries

Armstrong World Industries, Inc. designs, manufactures, and sells ceiling systems primarily for use in the construction and renovation of residential and commercial buildings worldwide. It principally offers mineral fiber, fiberglass wool, and metal ceiling systems. The company produces suspended mineral fiber and soft fiber ceiling systems; suspension system (grid) and ceiling component products; and acoustical ceiling, wall, and structural solutions. It sells its commercial ceiling materials and accessories to resale distributors and ceiling system contractors; residential ceiling products to wholesalers and retailers, such as large home centers; and architectural specialties products to resale distributors and ceiling systems contractors. The company was incorporated in 1891 and is headquartered in Lancaster, Pennsylvania.

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