Financial Survey: Deswell Industries (NASDAQ:DSWL) versus Riskgeorge In (OTCMKTS:RSKIA)

Deswell Industries (NASDAQ:DSWL) and Riskgeorge In (OTCMKTS:RSKIA) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Earnings & Valuation

This table compares Deswell Industries and Riskgeorge In”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deswell Industries	$67.61 million	0.73	$11.14 million	$0.48	6.46
Riskgeorge In	$22.54 million	3.85	$7.13 million	$1.88	9.44

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

Profitability

This table compares Deswell Industries and Riskgeorge In’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
Riskgeorge In	38.22%	15.63%	13.86%

Volatility and Risk

Deswell Industries has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Riskgeorge In has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.

Dividends

Deswell Industries pays an annual dividend of $0.20 per share and has a dividend yield of 6.5%. Riskgeorge In pays an annual dividend of $1.00 per share and has a dividend yield of 5.6%. Deswell Industries pays out 41.7% of its earnings in the form of a dividend. Riskgeorge In pays out 53.2% 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. Deswell Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and price targets for Deswell Industries and Riskgeorge In, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deswell Industries	0	0	1	0	3.00
Riskgeorge In	0	0	0	0	0.00

Institutional and Insider Ownership

0.1% of Riskgeorge In shares are held by institutional investors. 39.0% of Deswell Industries shares are held by company insiders. Comparatively, 59.8% of Riskgeorge In shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Riskgeorge In beats Deswell Industries on 8 of the 15 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 Riskgeorge In

George Risk Industries, Inc. designs, manufactures, and sells various electronic components worldwide. It operates in three segments: security line products, cable and wiring tools (Labor Saving Devices – LSDI) products, and all other products. The company offers computer keyboards, proximity switches, security alarm components and systems, pool access alarms, EZ Duct wire covers, water sensors, electronic switching devices, security switches, and wire and cable installation tools, as well as door and window contact switches, environmental products, liquid detection sensors, and raceway wire covers. Its products are used for residential, commercial, industrial, and government installations. The company serves security alarm distributors, alarm installers, original equipment manufacturers, and distributors of off-the-shelf keyboards. George Risk Industries, Inc. was incorporated in 1961 and is based in Kimball, Nebraska.