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

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

Earnings and Valuation

This table compares Data I/O and Avnet”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)	-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.

Risk & Volatility

Data I/O has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, Avnet has a beta of 1.11, suggesting that its stock 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 provided 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 presently has a consensus price target of $5.00, indicating a potential upside of 95.31%. Avnet has a consensus price target of $103.75, indicating a potential upside of 23.56%. Given Data I/O’s higher probable upside, equities analysts clearly believe Data I/O is more favorable than Avnet.

Insider & 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, large money managers and hedge funds believe a company will outperform the market over the long term.

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.