American Superconductor (NASDAQ:AMSC – Get Free Report) and Deswell Industries (NASDAQ:DSWL – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Profitability
This table compares American Superconductor and Deswell Industries’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
American Superconductor | 6.00% | 9.35% | 6.20% |
Deswell Industries | N/A | N/A | N/A |
Insider and Institutional Ownership
52.3% of American Superconductor shares are owned by institutional investors. 4.8% of American Superconductor shares are owned by company insiders. Comparatively, 39.0% of Deswell Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
American Superconductor | 0 | 1 | 1 | 0 | 2.50 |
Deswell Industries | 0 | 0 | 1 | 0 | 3.00 |
American Superconductor presently has a consensus target price of $39.00, suggesting a potential downside of 35.02%. Given American Superconductor’s higher possible upside, analysts clearly believe American Superconductor is more favorable than Deswell Industries.
Valuation and Earnings
This table compares American Superconductor and Deswell Industries”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
American Superconductor | $222.82 million | 12.16 | $6.03 million | $0.39 | 153.90 |
Deswell Industries | $67.61 million | 0.80 | $11.14 million | N/A | N/A |
Deswell Industries has lower revenue, but higher earnings than American Superconductor.
Volatility and Risk
American Superconductor has a beta of 3, indicating that its share price is 200% more volatile than the S&P 500. Comparatively, Deswell Industries has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.
Summary
American Superconductor beats Deswell Industries on 8 of the 11 factors compared between the two stocks.
About American Superconductor
American Superconductor Corporation, together with its subsidiaries, provides megawatt-scale power resiliency solutions worldwide. The company operates through Grid and Wind segments. The Grid segment offers products and services that enable electric utilities, industrial facilities, and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand. It provides transmission planning services, which identify power grid congestion, poor power quality, and other risks; grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems; D-VAR systems used for controlling power flow and voltage in the AC transmission system; actiVAR system, a fast-switching medium-voltage reactive compensation solution; armorVAR system installed for reactive compensation, power factor correction, loss reduction, utility bill savings, and mitigation of common power quality concerns related to power converter-based generation and load devices; and D-VAR volt var optimization (VVO) that serves the distribution power grid market. This segment also offers ship protection systems, which reduce a naval ship’s magnetic signature; and ON board power delivery systems, power generation systems, and propulsion systems; and transformers and rectifiers systems. The Wind segment designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand. It also supplies power electronics and software-based control systems, engineered designs, and support services; and provides customer support services to wind turbine manufacturers. This segment’s design portfolio comprises a range of drivetrains and power ratings of 2 megawatts and higher. American Superconductor Corporation was incorporated in 1987 and is headquartered in Ayer, Massachusetts.
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.
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