Comparing Data I/O (NASDAQ:DAIO) & Sanmina (NASDAQ:SANM)

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

Institutional & Insider Ownership

37.0% of Data I/O shares are held by institutional investors. Comparatively, 92.7% of Sanmina shares are held by institutional investors. 4.1% of Data I/O shares are held by insiders. Comparatively, 3.1% of Sanmina shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Data I/O has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Sanmina has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Earnings and Valuation

This table compares Data I/O and Sanmina”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data I/O	$21.50 million	1.24	-$5.24 million	($0.93)	-3.06
Sanmina	$8.13 billion	1.39	$245.89 million	$5.59	37.65

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Data I/O	-48.73%	-66.83%	-40.69%
Sanmina	2.41%	19.08%	5.75%

Analyst Recommendations

This is a summary of recent recommendations for Data I/O and Sanmina, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data I/O	1	1	1	2	2.80
Sanmina	0	3	2	0	2.40

Data I/O currently has a consensus price target of $5.11, indicating a potential upside of 79.30%. Sanmina has a consensus price target of $198.33, indicating a potential downside of 5.77%. Given Data I/O’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Data I/O is more favorable than Sanmina.

Summary

Sanmina beats Data I/O on 11 of the 15 factors compared between the two stocks.

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.

About Sanmina

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. It operates in two businesses, Integrated Manufacturing Solutions; and Components, Products and Services. The company offers product design and engineering, including concept development, detailed design, prototyping, validation, preproduction, manufacturing design release, and product industrialization; assembly and test services; direct order fulfillment and logistics services; after-market product service and support; and supply chain management services, as well as engages in the manufacturing of components, subassemblies, and complete systems. In addition, the company provides components, such as printed circuit boards, backplane and backplane assemblies, cable assemblies, fabricated metal parts, precision machined parts, and plastic injected molded parts; memory solutions; storage platforms; optical, radio frequency, and microelectronic solutions; defense and aerospace product, design, manufacturing, repair, and refurbishment services; and cloud-based manufacturing execution software. It offers its products and services primarily to original equipment manufacturers in the industrial, medical, defense and aerospace, automotive, communications networks, and cloud solutions. Sanmina Corporation was incorporated in 1980 and is headquartered in San Jose, California.