Financial Contrast: LightPath Technologies (NASDAQ:LPTH) versus Data I/O (NASDAQ:DAIO)

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

Valuation and Earnings

This table compares LightPath Technologies and Data I/O”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LightPath Technologies	$37.20 million	21.10	-$14.87 million	($0.52)	-26.15
Data I/O	$21.77 million	1.23	-$3.09 million	($0.40)	-7.15

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

Institutional and Insider Ownership

56.3% of LightPath Technologies shares are owned by institutional investors. Comparatively, 37.0% of Data I/O shares are owned by institutional investors. 24.8% of LightPath Technologies shares are owned by insiders. Comparatively, 2.6% of Data I/O shares are owned by 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 LightPath Technologies and Data I/O’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LightPath Technologies	-43.41%	-32.64%	-10.70%
Data I/O	-16.16%	-21.44%	-15.24%

Risk & Volatility

LightPath Technologies has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Data I/O has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightPath Technologies	1	1	4	1	2.71
Data I/O	1	1	2	1	2.60

LightPath Technologies presently has a consensus target price of $12.10, suggesting a potential downside of 11.03%. Data I/O has a consensus target price of $5.11, suggesting a potential upside of 78.67%. Given Data I/O’s higher possible upside, analysts clearly believe Data I/O is more favorable than LightPath Technologies.

About LightPath Technologies

LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. The company offers precision molded glass aspheric optics, molded and diamond-turned infrared aspheric lenses, and other optical components used to produce products that manipulate light; and infrared products, including catalog and custom infrared optics. Its products are used in defense products, medical devices, laser aided industrial tools, automotive safety applications, barcode scanners, optical data storage, hybrid fiber coax datacom, telecommunications, machine vision and sensors, and other sectors. The company sells its products directly to customers in Europe and Asia. LightPath Technologies, Inc. was founded in 1985 and is headquartered in Orlando, Florida.

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.