Head to Head Contrast: Data I/O (NASDAQ:DAIO) and Alps Electric (OTCMKTS:APELY)

Data I/O (NASDAQ:DAIO) and Alps Electric (OTCMKTS:APELY) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Data I/O	-12.21%	-14.56%	-10.84%
Alps Electric	3.82%	2.64%	1.43%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data I/O	$21.77 million	1.28	-$3.09 million	($0.29)	-10.41
Alps Electric	$6.50 billion	0.30	$248.48 million	$2.42	7.93

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

Institutional & Insider Ownership

37.0% of Data I/O shares are owned by institutional investors. Comparatively, 0.1% of Alps Electric shares are owned by institutional investors. 7.3% of Data I/O shares are owned by insiders. Comparatively, 10.4% of Alps Electric shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Data I/O has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Alps Electric has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Data I/O and Alps Electric, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data I/O	0	0	1	0	3.00
Alps Electric	1	0	0	0	1.00

Data I/O presently has a consensus target price of $4.00, indicating a potential upside of 32.45%. Given Data I/O’s stronger consensus rating and higher probable upside, analysts clearly believe Data I/O is more favorable than Alps Electric.

Summary

Alps Electric beats Data I/O on 8 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 Alps Electric

Alps Alpine Co., Ltd. manufactures and sells electronic components in Japan and internationally. It operates through four segments: Components, Sensor Communication, Module Systems, and Logistics. The company’s products for the consumer, industrial equipment, and IoT markets include TACT switches, worker condition monitoring systems, HAPTIC reactor, actuator for cameras, remote monitoring system for logistics, analog meter monitoring system, resistive position sensor, pressure sensor, air environment sensor module, three-axis geomagnetic sensor, humidity sensor, and pc board mount current sensor. Its products for the automotive market comprises TACT and detector switches, Encoder, aspherical glass lens with metal holder, HAPTIC reactor, trimagic converter, current sensor, magnetic sensor, millimeter-wave sensor, GNSS module, 5G NR module, power window switch, electric shifter, sound system, cabin controller, smart door trim, electric shifter, integrated display, premium sound speakers, and customized car products. The company also provides systems development, office, and financing and leasing services, as well as transportation, storage, and forwarding services. The company was formerly known as Alps Electric Co., Ltd. and changed its name to Alps Alpine Co., Ltd. in January 2019. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.