Head to Head Analysis: Data I/O (NASDAQ:DAIO) vs. Omron (OTCMKTS:OMRNY)

Data I/O (NASDAQ:DAIO) and Omron (OTCMKTS:OMRNY) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Data I/O	-11.49%	-14.60%	-10.62%
Omron	4.04%	3.46%	2.39%

Risk and Volatility

Data I/O has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Omron has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data I/O	1	0	1	1	2.67
Omron	0	0	0	0	0.00

Data I/O currently has a consensus price target of $5.22, suggesting a potential upside of 77.55%. Given Data I/O’s stronger consensus rating and higher probable upside, research analysts clearly believe Data I/O is more favorable than Omron.

Insider and Institutional Ownership

37.0% of Data I/O shares are owned by institutional investors. Comparatively, 1.1% of Omron shares are owned by institutional investors. 7.3% of Data I/O shares are owned by 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data I/O	$22.73 million	1.21	-$3.09 million	($0.40)	-7.35
Omron	$5.26 billion	1.10	$107.39 million	$1.11	25.24

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

Summary

Omron 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 Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.