Critical Comparison: Ostin Technology Group (NASDAQ:OST) & Data I/O (NASDAQ:DAIO)

Ostin Technology Group (NASDAQ:OST) and Data I/O (NASDAQ:DAIO) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Earnings & Valuation

This table compares Ostin Technology Group and Data I/O”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ostin Technology Group	$32.46 million	0.28	-$10.06 million	N/A	N/A
Data I/O	$22.73 million	1.26	-$3.09 million	($0.28)	-10.86

Data I/O has lower revenue, but higher earnings than Ostin Technology Group.

Institutional & Insider Ownership

21.9% of Ostin Technology Group shares are held by institutional investors. Comparatively, 37.0% of Data I/O shares are held by institutional investors. 44.8% of Ostin Technology Group shares are held by company insiders. Comparatively, 2.6% of Data I/O shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Ostin Technology Group and Data I/O’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ostin Technology Group	N/A	N/A	N/A
Data I/O	-11.49%	-14.60%	-10.62%

Risk and Volatility

Ostin Technology Group has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Data I/O has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Ostin Technology Group and Data I/O, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ostin Technology Group	1	0	0	0	1.00
Data I/O	1	0	1	0	2.00

Data I/O has a consensus target price of $5.22, indicating a potential upside of 71.71%. Given Data I/O’s stronger consensus rating and higher probable upside, analysts plainly believe Data I/O is more favorable than Ostin Technology Group.

Summary

Data I/O beats Ostin Technology Group on 7 of the 12 factors compared between the two stocks.

About Ostin Technology Group

Ostin Technology Group Co., Ltd. designs, develops, and manufactures thin-film transistor liquid crystal display (TFT-LCD) modules and polarizers in China. It offers display modules to markets, such as consumer electronics, including AIOs, monitors, laptop computers, and tablets; automotive displays, including dashboard, and navigation and multimedia systems; and commercial LCD displays, which are used to display multimedia graphics, such as company advertisements, promotions, scoreboards, and traffic signs in education, medical treatment, business, outdoor, and cultural construction industries. The company sells its products directly to customers, as well as to customers' designated system integrators. Ostin Technology Group Co., Ltd. was founded in 2010 and is based in Nanjing, China.

About Data I/O

Data I/O Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of programming and security deployment systems and services for electronic device manufacturers in the United States, Europe, and internationally. Its programming system products are used to program integrated circuits (ICs) with the specific data for the ICs. The company offers PSV handlers off-line automated programming systems, such as PSV2800 automated programming system which focuses on high-volume manufacturing in a lower cost platform; PSV7000 automated programming system for security deployment upgrades; PSV5000 automated programming system that combines mid-range capacity and supports security deployment; and PSV3500 automated programming system which provides basic programming needs. It also provides SentriX security deployment system; and LumenX and non-automated FlashPAK III programming systems. In addition, the company offers hardware support, system installation and repair, and device programming services. It markets and sells its products to original equipment manufacturers in automotive and consumer electronics, internet of things, and industrial, as well as electronic manufacturing service contract manufacturers through direct sales, and indirect sales representatives and distributors. Data I/O Corporation was incorporated in 1969 and is headquartered in Redmond, Washington.