Data I/O (NASDAQ:DAIO) & Avnet (NASDAQ:AVT) Head-To-Head Contrast

Data I/O (NASDAQ:DAIO) and Avnet (NASDAQ:AVT) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Insider and Institutional Ownership

37.0% of Data I/O shares are held by institutional investors. Comparatively, 95.8% of Avnet shares are held by institutional investors. 4.1% of Data I/O shares are held by company insiders. Comparatively, 2.0% of Avnet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Data I/O has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, Avnet has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Data I/O and Avnet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data I/O	1	1	0	1	2.33
Avnet	1	2	2	1	2.50

Data I/O currently has a consensus price target of $5.00, suggesting a potential upside of 95.31%. Avnet has a consensus price target of $103.75, suggesting a potential upside of 23.56%. Given Data I/O’s higher possible upside, equities research analysts clearly believe Data I/O is more favorable than Avnet.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data I/O	$21.50 million	1.24	-$5.24 million	($0.93)	-2.75
Avnet	$27.63 billion	0.25	$334.39 million	$6.66	12.61

Avnet has higher revenue and earnings than Data I/O. Data I/O is trading at a lower price-to-earnings ratio than Avnet, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Data I/O	-57.96%	-83.74%	-48.05%
Avnet	1.74%	14.15%	4.72%

Summary

Avnet beats Data I/O on 10 of the 14 factors compared between the two stocks.

About Data I/O

Data I/O Corporation develops equipment and software for programming semiconductor devices and provisioning security credentials. Its systems prepare programmable chips—including microcontrollers and memory devices—for use in electronic products. The company’s offerings include automated programming systems, device-handling equipment, software and security-provisioning solutions. These products help electronics manufacturers and semiconductor suppliers manage programming and secure configuration during production.

About Avnet

Avnet, Inc. is a global distributor of electronic components and technology products. Its offerings include semiconductors, interconnect and electromechanical components, and embedded systems used in products across industries such as communications, industrial, automotive, and healthcare. In addition to distributing components, Avnet provides services that support customers throughout product development and manufacturing. These include engineering and design assistance, supply-chain management, procurement, inventory planning, and logistics.