Microwave Filter (OTCMKTS:MFCO) versus Data I/O (NASDAQ:DAIO) Critical Contrast

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

Risk & Volatility

Microwave Filter has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Data I/O has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Microwave Filter	N/A	N/A	N/A
Data I/O	-23.19%	-29.44%	-20.97%

Analyst Recommendations

This is a summary of current ratings for Microwave Filter and Data I/O, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microwave Filter	0	0	0	0	0.00
Data I/O	1	1	2	1	2.60

Data I/O has a consensus target price of $5.11, suggesting a potential upside of 88.56%. Given Data I/O’s stronger consensus rating and higher possible upside, analysts plainly believe Data I/O is more favorable than Microwave Filter.

Valuation & Earnings

This table compares Microwave Filter 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
Microwave Filter	$2.18 million	1.03	-$260,000.00	N/A	N/A
Data I/O	$21.50 million	1.18	-$4.99 million	($0.54)	-5.02

Microwave Filter has higher earnings, but lower revenue than Data I/O.

Institutional & Insider Ownership

37.0% of Data I/O shares are held by institutional investors. 6.9% of Microwave Filter shares are held by insiders. Comparatively, 2.6% of Data I/O shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Data I/O beats Microwave Filter on 8 of the 13 factors compared between the two stocks.

About Microwave Filter

Microwave Filter Company, Inc. designs, develops, manufactures, and sells electronic filters for radio and microwave frequencies primarily in the United States. It manufactures RF filters and related components for eliminating interference and facilitating signal processing for cable television, broadcast, commercial and military communications, avionics, radar, navigation, and defense markets. The company also designs waveguide, stripline/microstrip, transmission line, miniature/subminiature, and lumped constant filters. Its configurations include bandpass, highpass, lowpass, bandstop, multiplexers, tunable notch, tunable bandpass, high power filters, amplitude equalized, delay equalized, and filter networks. The company serves 5G, cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial, and aerospace and defense electronics markets. Microwave Filter Company, Inc. was incorporated in 1967 and is based in East Syracuse, New York.

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.