Financial Review: Amphenol (NYSE:APH) vs. Data I/O (NASDAQ:DAIO)

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

Institutional & Insider Ownership

37.0% of Data I/O shares are owned by institutional investors. Comparatively, 97.0% of Amphenol shares are owned by institutional investors. 4.1% of Data I/O shares are owned by company insiders. Comparatively, 1.4% of Amphenol shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Data I/O has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Amphenol has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Data I/O and Amphenol, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data I/O	1	1	1	2	2.80
Amphenol	0	1	14	2	3.06

Data I/O presently has a consensus target price of $5.11, indicating a potential upside of 79.30%. Amphenol has a consensus target price of $96.34, indicating a potential upside of 14.69%. Given Data I/O’s higher possible upside, equities analysts plainly believe Data I/O is more favorable than Amphenol.

Profitability

This table compares Data I/O and Amphenol’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%
Amphenol	17.73%	39.87%	14.80%

Earnings & Valuation

This table compares Data I/O and Amphenol”s gross 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)	-3.06
Amphenol	$23.09 billion	8.97	$4.27 billion	$2.00	42.00

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

Summary

Amphenol beats Data I/O on 11 of the 14 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 Amphenol

Amphenol Corporation, together with its subsidiaries, primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the United States, China, and internationally. It operates through three segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. The company offers connectors and connector systems, including harsh environment data, power, high-speed, fiber optic, and radio frequency interconnect products; busbars and power distribution systems; and other connectors. It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; other products comprising flexible and rigid printed circuit boards, hinges, other mechanical, and production related products. In addition, the company offers consumer device, network infrastructure, and other antennas; coaxial, power, and specialty cables; and sensors and sensor-based products. It sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and service providers in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets. Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.