Data I/O (NASDAQ:DAIO – Get Free Report) and IEH (OTCMKTS:IEHC – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current ratings and target prices for Data I/O and IEH, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Data I/O | 1 | 1 | 1 | 2 | 2.80 |
| IEH | 0 | 1 | 0 | 0 | 2.00 |
Data I/O presently has a consensus target price of $5.11, suggesting a potential upside of 90.67%. Given Data I/O’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Data I/O is more favorable than IEH.
Earnings and Valuation
This table compares Data I/O and IEH”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Data I/O | $21.50 million | 1.17 | -$5.24 million | ($0.93) | -2.88 |
| IEH | $29.42 million | 2.42 | -$1.30 million | ($0.01) | -2,874.00 |
IEH has higher revenue and earnings than Data I/O. IEH is trading at a lower price-to-earnings ratio than Data I/O, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Data I/O and IEH’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Data I/O | -48.73% | -66.83% | -40.69% |
| IEH | 0.04% | 0.06% | 0.05% |
Risk & Volatility
Data I/O has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, IEH has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500.
Institutional & Insider Ownership
37.0% of Data I/O shares are held by institutional investors. 4.1% of Data I/O shares are held by insiders. Comparatively, 28.1% of IEH shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
IEH beats Data I/O on 8 of the 15 factors compared between the two stocks.
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.
About IEH
IEH Corporation designs, develops, manufactures, and sells printed circuit board connectors and custom interconnects for high performance applications in the United States and internationally. The company's products are used as basic components of larger assemblies of finished goods. It markets its products directly to original equipment manufacturers, as well as through authorized representatives and distributors primarily to defense, aerospace, medical, industrial, test equipment, space, and commercial electronic markets. The company was formerly known as Industrial Heat Treating Company, Inc. and changed its name to IEH Corporation in March 1989. IEH Corporation was founded in 1941 and is based in Brooklyn, New York.
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