Data I/O (NASDAQ:DAIO – Get Free Report) and Digital Ally (NASDAQ:KUST – Get Free Report) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Earnings and Valuation
This table compares Data I/O and Digital Ally”s top-line 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 | 1.23 | -$5.24 million | ($0.93) | -3.03 |
| Digital Ally | $13.75 million | 0.28 | -$6.67 million | ($16.87) | -0.03 |
Institutional and Insider Ownership
37.0% of Data I/O shares are held by institutional investors. Comparatively, 4.2% of Digital Ally shares are held by institutional investors. 4.1% of Data I/O shares are held by company insiders. Comparatively, 0.0% of Digital Ally shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and price targets for Data I/O and Digital Ally, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Data I/O | 1 | 1 | 1 | 2 | 2.80 |
| Digital Ally | 1 | 0 | 0 | 0 | 1.00 |
Data I/O currently has a consensus target price of $5.11, suggesting a potential upside of 81.53%. Given Data I/O’s stronger consensus rating and higher probable upside, analysts clearly believe Data I/O is more favorable than Digital Ally.
Profitability
This table compares Data I/O and Digital Ally’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% |
| Digital Ally | -96.36% | -277.67% | -56.35% |
Volatility and Risk
Data I/O has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Digital Ally has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.
Summary
Data I/O beats Digital Ally on 14 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 Digital Ally
Digital Ally, Inc. produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States and internationally. It operates through Video Solutions, Revenue Cycle Management, and Ticketing segments. The company offers in-car digital video mirror systems for law enforcement; in-car digital video event recorder systems for commercial fleets; a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information; miniature body-worn digital video systems for law enforcement and private security; and VuLink, an in-car device that enables an in-car digital audio/video system and a body worn digital audio/video camera system to automatically and simultaneously start recording. It also provides VuVault and EVO Web, a cloud-based evidence management system; FleetVU Manager, a web-based software for commercial fleet tracking and monitoring; ThermoVu, a non-contact temperature-screening instrument that measures temperature through the wrist and controls entry to facilities when temperature measurements exceed pre-determined parameters; and Shield disinfectants and cleansers, as well as other personal protective equipment and supplies, such as masks, gloves, sanitizer wipes, and electrostatic sprayer to health care workers and other consumers. In addition, the company offers working capital and back-office services, including insurance and benefit verification, medical treatment documentation and coding, and collections to healthcare organizations; and operates TicketSmarter.com, an online ticketing marketplace for ticket sales, partnerships, and ticket resale services for live events, including concerts, sporting events, theatres, and performing arts. Digital Ally, Inc. was founded in 2004 and is headquartered in Lenexa, Kansas.
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