Analyzing Data I/O (NASDAQ:DAIO) & Acorn Energy (NASDAQ:ACFN)

Acorn Energy (NASDAQ:ACFN) and Data I/O (NASDAQ:DAIO) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Acorn Energy	16.12%	10.06%	6.32%
Data I/O	-48.73%	-66.83%	-40.69%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acorn Energy	$11.48 million	4.09	$2.51 million	$0.61	30.66
Data I/O	$21.50 million	1.27	-$5.24 million	($0.93)	-3.12

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

Volatility & Risk

Acorn Energy has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Data I/O has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Insider & Institutional Ownership

37.0% of Data I/O shares are held by institutional investors. 35.6% of Acorn Energy shares are held by insiders. Comparatively, 4.1% of Data I/O shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Acorn Energy and Data I/O, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acorn Energy	0	1	0	0	2.00
Data I/O	1	1	1	2	2.80

Data I/O has a consensus price target of $5.11, suggesting a potential upside of 76.21%. Given Data I/O’s stronger consensus rating and higher possible upside, analysts clearly believe Data I/O is more favorable than Acorn Energy.

Summary

Acorn Energy beats Data I/O on 8 of the 15 factors compared between the two stocks.

About Acorn Energy

Acorn Energy, Inc., through its subsidiaries, develops and markets wireless remote monitoring and control systems for various markets in the United States and internationally. It operates through two segments, Power Generation (PG) Monitoring and Cathodic Protection (CP) Monitoring. The PG segment provides wireless remote monitoring and control systems, and services for critical assets, which include stand-by power generators, compressors, pumps, pumpjacks, light towers, turbines, and other industrial equipment; and Internet of Things applications. The CP segment offers remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies. The company was incorporated in 1986 and is based in Wilmington, Delaware.

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.