Head to Head Review: Data I/O (NASDAQ:DAIO) versus Hoya (OTCMKTS:HOCPY)

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

Insider & Institutional Ownership

37.0% of Data I/O shares are held by institutional investors. Comparatively, 0.1% of Hoya shares are held by institutional investors. 4.1% of Data I/O shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Data I/O and Hoya”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data I/O	$21.50 million	1.18	-$5.24 million	($0.93)	-2.62
Hoya	$5.88 billion	8.35	$1.58 billion	$5.27	27.83

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

Volatility and Risk

Data I/O has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, Hoya has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Profitability

This table compares Data I/O and Hoya’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%
Hoya	28.48%	27.06%	21.51%

Analyst Ratings

This is a summary of current ratings and target prices for Data I/O and Hoya, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data I/O	1	1	0	1	2.33
Hoya	0	0	0	1	4.00

Data I/O currently has a consensus price target of $5.00, indicating a potential upside of 105.25%. Given Data I/O’s higher probable upside, equities research analysts clearly believe Data I/O is more favorable than Hoya.

Summary

Hoya beats Data I/O on 9 of the 13 factors compared between the two stocks.

About Data I/O

Data I/O Corporation (NASDAQ:DAIO) develops and supplies automated programming and security-provisioning systems for electronic devices. Its equipment is used to load software, firmware and other data into semiconductor devices such as flash memory, microcontrollers and programmable logic devices during electronics manufacturing. The company’s product portfolio includes automated device-programming systems, programming engines, software and related accessories. Its offerings are designed to support high-volume production, improve programming accuracy and help manufacturers manage device security, including the provisioning of keys and other credentials used in connected and embedded products.

About Hoya

HOYA Corporation is a Japan-based technology company that develops and manufactures products for the healthcare and information technology markets. Founded in 1941 as an optical glass manufacturer, the company has expanded its operations to serve customers around the world. HOYA’s healthcare products include eyeglass lenses, intraocular lenses and medical equipment such as endoscopes. Its information technology business supplies products used in semiconductor manufacturing and data storage, including photomasks, mask blanks and glass substrates for hard disk drives.