Comparing AptarGroup (ATR) and Deswell Industries (DSWL)

AptarGroup (NYSE:ATR) and Deswell Industries (NASDAQ:DSWL) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Volatility & Risk

AptarGroup has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Deswell Industries has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Profitability

This table compares AptarGroup and Deswell Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AptarGroup 7.52% 18.42% 7.70%
Deswell Industries N/A N/A N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for AptarGroup and Deswell Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AptarGroup 1 6 1 0 2.00
Deswell Industries 0 0 0 0 N/A

AptarGroup currently has a consensus price target of $102.86, indicating a potential upside of 3.09%. Given AptarGroup’s higher probable upside, research analysts clearly believe AptarGroup is more favorable than Deswell Industries.

Institutional and Insider Ownership

90.5% of AptarGroup shares are owned by institutional investors. Comparatively, 4.8% of Deswell Industries shares are owned by institutional investors. 5.3% of AptarGroup 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, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

AptarGroup pays an annual dividend of $1.36 per share and has a dividend yield of 1.4%. Deswell Industries pays an annual dividend of $0.12 per share and has a dividend yield of 3.8%. AptarGroup pays out 39.5% of its earnings in the form of a dividend. AptarGroup has raised its dividend for 5 consecutive years and Deswell Industries has raised its dividend for 6 consecutive years. Deswell Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AptarGroup $2.47 billion 2.54 $220.03 million $3.44 29.00
Deswell Industries $60.67 million 0.83 $6.19 million N/A N/A

AptarGroup has higher revenue and earnings than Deswell Industries.

Summary

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

AptarGroup Company Profile

AptarGroup, Inc. provides a range of packaging, dispensing, and sealing solutions, primarily for the beauty, personal care, home care, prescription drug, consumer health care, injectable, and food and beverage markets. The company operates in three segments: Beauty + Home, Pharma, and Food + Beverage. The Beauty + Home segment primarily sells pumps, closures, aerosol valves, accessories, and sealing solutions to the personal care and household markets; and pumps and decorative components to the beauty market. The Pharma segment provides pumps for nasal allergy treatments; and metered dose inhaler valves for respiratory ailments, such as asthma and chronic obstructive pulmonary diseases in pharmaceutical market. The Food + Beverage segment offers dispensing and non-dispensing closures, spray pumps, and aerosol valves to the food and beverage markets. The company also manufactures and sells elastomeric primary packaging components for injectable market, which include stoppers for infusion, antibiotic, lyophilization, and diagnostic vials; and pre-filled syringe components, such as plungers, needle shields, tip caps and cartridges, and dropper bulbs and syringe plungers. AptarGroup, Inc. sells its products through own sales force, as well as independent representatives and distributors in Asia, Europe, Latin America, and North America. The company was founded in 1992 and is headquartered in Crystal Lake, Illinois.

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.

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