Analyzing Hoya (OTCMKTS:HOCPY) and Data I/O (NASDAQ:DAIO)

Hoya (OTCMKTS:HOCPY) and Data I/O (NASDAQ:DAIO) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Earnings & Valuation

This table compares Hoya 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
Hoya	$5.88 billion	8.50	$1.58 billion	$5.27	28.36
Data I/O	$21.50 million	1.24	-$5.24 million	($0.93)	-2.75

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hoya	28.48%	27.06%	21.51%
Data I/O	-57.96%	-83.74%	-48.05%

Risk and Volatility

Hoya has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Data I/O has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Hoya and Data I/O, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hoya	0	0	0	1	4.00
Data I/O	1	1	0	1	2.33

Data I/O has a consensus target price of $5.00, suggesting a potential upside of 95.31%. Given Data I/O’s higher possible upside, analysts clearly believe Data I/O is more favorable than Hoya.

Institutional and Insider Ownership

0.1% of Hoya shares are held by institutional investors. Comparatively, 37.0% of Data I/O shares are held by institutional investors. 4.1% 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 company will outperform the market over the long term.

Summary

Hoya beats Data I/O on 9 of the 13 factors compared between the two stocks.

About Hoya

HOYA Corporation is a Japan-based technology company that develops and manufactures products for the healthcare and information technology markets. Founded in 1941 as an optical glass manufacturer, the company has expanded its operations to serve customers around the world. HOYA’s healthcare products include eyeglass lenses, intraocular lenses and medical equipment such as endoscopes. Its information technology business supplies products used in semiconductor manufacturing and data storage, including photomasks, mask blanks and glass substrates for hard disk drives.

About Data I/O

Data I/O Corporation develops equipment and software for programming semiconductor devices and provisioning security credentials. Its systems prepare programmable chips—including microcontrollers and memory devices—for use in electronic products. The company’s offerings include automated programming systems, device-handling equipment, software and security-provisioning solutions. These products help electronics manufacturers and semiconductor suppliers manage programming and secure configuration during production.