Data I/O (NASDAQ:DAIO) and Universal Display (NASDAQ:OLED) Critical Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Data I/O	-16.16%	-21.44%	-15.24%
Universal Display	34.65%	14.10%	12.53%

Institutional and Insider Ownership

37.0% of Data I/O shares are owned by institutional investors. Comparatively, 78.2% of Universal Display shares are owned by institutional investors. 7.3% of Data I/O shares are owned by company insiders. Comparatively, 2.0% of Universal Display shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Data I/O has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Universal Display has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Data I/O and Universal Display, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data I/O	1	1	1	1	2.50
Universal Display	0	4	3	0	2.43

Data I/O currently has a consensus price target of $5.22, indicating a potential upside of 65.71%. Universal Display has a consensus price target of $177.60, indicating a potential upside of 41.21%. Given Data I/O’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Data I/O is more favorable than Universal Display.

Earnings & Valuation

This table compares Data I/O and Universal Display”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	1.36	-$3.09 million	($0.40)	-7.88
Universal Display	$647.68 million	9.23	$222.08 million	$4.64	27.11

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

Summary

Universal Display beats Data I/O on 11 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 Universal Display

Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications in the United States and internationally. The company offers PHOLED technologies and materials for displays and lighting products under the UniversalPHOLED brand. It is also involved in the research, development, and commercialization of other OLED device and manufacturing technologies, including FOLED that are flexible OLEDs for the fabrication of OLEDs on flexible substrates; and OVJP, an organic vapor jet printing technology. In addition, the company provides technology development and support services, including third-party collaboration and support to third parties for the commercialization of their OLED products; and contract research services in the areas of chemical synthesis research, development, and commercialization for non-OLED applications, as well as engages in the intellectual property and technology licensing activities. Universal Display Corporation was founded in 1985 and is headquartered in Ewing, New Jersey.