Data I/O (NASDAQ:DAIO – Get Free Report) and AU Optronics (OTCMKTS:AUOTY – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
37.0% of Data I/O shares are held by institutional investors. 2.6% of Data I/O shares are held by company insiders. Comparatively, 16.0% of AU Optronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
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Profitability
This table compares Data I/O and AU Optronics’ net margins, return on equity and return on assets.
Analyst Ratings
This is a summary of recent ratings and price targets for Data I/O and AU Optronics, as provided by MarketBeat.
Data I/O presently has a consensus target price of $5.22, suggesting a potential upside of 56.76%. Given Data I/O’s stronger consensus rating and higher possible upside, equities analysts clearly believe Data I/O is more favorable than AU Optronics.
Earnings & Valuation
This table compares Data I/O and AU Optronics”s gross revenue, earnings per share and valuation.
Data I/O has higher earnings, but lower revenue than AU Optronics. AU Optronics 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.
Risk & Volatility
Data I/O has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, AU Optronics has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.
Summary
Data I/O beats AU Optronics on 8 of the 14 factors compared between the two stocks.
About Data I/O
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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 AU Optronics
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AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People’s Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.