Contrasting Data I/O (NASDAQ:DAIO) and Identiv (NASDAQ:INVE)

Identiv (NASDAQ:INVE) and Data I/O (NASDAQ:DAIO) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Valuation and Earnings

This table compares Identiv and Data I/O”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Identiv	$21.48 million	2.91	-$18.00 million	($0.66)	-3.91
Data I/O	$21.50 million	1.21	-$5.24 million	($0.93)	-2.98

Data I/O has higher revenue and earnings than Identiv. Identiv 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.

Institutional & Insider Ownership

65.2% of Identiv shares are owned by institutional investors. Comparatively, 37.0% of Data I/O shares are owned by institutional investors. 3.6% of Identiv shares are owned by insiders. Comparatively, 4.1% of Data I/O shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Identiv has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Data I/O has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Identiv	-62.93%	-11.02%	-10.34%
Data I/O	-48.73%	-66.83%	-40.69%

Analyst Ratings

This is a summary of recent ratings and price targets for Identiv and Data I/O, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Identiv	1	2	0	0	1.67
Data I/O	1	1	1	2	2.80

Identiv presently has a consensus target price of $3.40, suggesting a potential upside of 31.78%. Data I/O has a consensus target price of $5.11, suggesting a potential upside of 84.48%. Given Data I/O’s stronger consensus rating and higher possible upside, analysts plainly believe Data I/O is more favorable than Identiv.

Summary

Data I/O beats Identiv on 10 of the 15 factors compared between the two stocks.

About Identiv

Identiv, Inc., a security technology company, that provides secure identification and physical security solutions that secure things, data, and physical places worldwide. It operates in two segments, Identity and Premises. The Identity segment offers products and solutions that enables secure access to information serving the logical access and cyber security markets, as well as protecting connected objects and information using radio-frequency identification embedded security. The Premises segment provides solutions for premises security market, such as access control, video surveillance, analytics, audio, access readers, and identities to government facilities, schools, utilities, hospitals, stores, and apartment buildings. The company sells its products through dealers, systems integrators, value added resellers, and resellers. The company was formerly known as Identive Group, Inc. and changed its name to Identiv, Inc. in May 2014. Identiv, Inc. was founded in 1990 and is headquartered in Fremont, California.

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.