Yaskawa Electric (OTCMKTS:YASKY) & Deswell Industries (NASDAQ:DSWL) Head to Head Analysis

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deswell Industries	0	0	1	0	3.00
Yaskawa Electric	0	1	1	2	3.25

Dividends

Deswell Industries pays an annual dividend of $0.20 per share and has a dividend yield of 5.9%. Yaskawa Electric pays an annual dividend of $0.30 per share and has a dividend yield of 0.6%. Deswell Industries pays out 41.7% of its earnings in the form of a dividend. Yaskawa Electric pays out 10.0% 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.

Earnings and Valuation

This table compares Deswell Industries and Yaskawa Electric”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deswell Industries	$67.61 million	0.80	$11.14 million	$0.48	7.08
Yaskawa Electric	$3.53 billion	2.00	$376.12 million	$2.99	18.20

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

Profitability

This table compares Deswell Industries and Yaskawa Electric’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
Yaskawa Electric	10.72%	13.12%	7.72%

Volatility & Risk

Deswell Industries has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Yaskawa Electric has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Summary

Yaskawa Electric beats Deswell Industries on 12 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 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 Yaskawa Electric

YASKAWA Electric Corporation engages in motion control, robotics, system engineering, and other businesses worldwide. It manufactures and sells various AC drives, including general purpose AC drives, specific purpose AC drives, AC Drive for systems, regenerative energy saving units, and PM motors for use in household appliances, such as air conditioners and refrigerators; social infrastructures comprising elevators, escalators, trains, cranes, fans, and pumps; and factories that manufacture printing machinery, textile machinery, rubber machinery, and other materials. The company also offers rotary servo motors, direct drive servo motors, linear motors/linear sliders, machine controllers, positioning sensor encoders, and servo amplifiers for use in industrial robots, semiconductor manufacturing apparatus, machine tools, flat panel display manufacturing equipment, and metal working machines; and arc and spot welding, handling/assembling, collaborative, biomedical, palletizing, press handling, sealing/cutting/laser machining, deburring, painting, glass substrates transfer, and semiconductor wafer transfer robots for use in semiconductor wafer conveyance, arc welding, spot welding, handling, assembly, and palletizing applications. In addition, it provides industrial system electrical products, such as medium-voltage AC drives, system use AC drives, and system controllers for use in iron and steel systems, water and wastewater treatment, crane, and paper-making/film/port cargo handling/fiber/printing applications. Further, the company offers equipment for energy saving and creation comprising PV inverters, systems for large wind turbines, control equipment for small-scale power generation, and motor drive systems for use in photovoltaic power generation, large-scale wind power generation, small-scale power generation, and electric vehicles. The company was founded in 1915 and is headquartered in Kitakyushu, Japan.