Arlo Technologies (NYSE:ARLO) vs. Data I/O (NASDAQ:DAIO) Financial Comparison

Data I/O (NASDAQ:DAIO – Get Free Report) and Arlo Technologies (NYSE:ARLO – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Profitability

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

Institutional & Insider Ownership

37.0% of Data I/O shares are owned by institutional investors. Comparatively, 83.2% of Arlo Technologies shares are owned by institutional investors. 4.1% of Data I/O shares are owned by insiders. Comparatively, 2.9% of Arlo Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Data I/O and Arlo Technologies, as reported by MarketBeat.com.

Data I/O presently has a consensus target price of $5.11, indicating a potential upside of 82.50%. Arlo Technologies has a consensus target price of $20.60, indicating a potential upside of 54.01%. Given Data I/O’s stronger consensus rating and higher possible upside, equities analysts clearly believe Data I/O is more favorable than Arlo Technologies.

Earnings and Valuation

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

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

Risk and Volatility

Data I/O has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Arlo Technologies has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.

Summary

Arlo Technologies beats Data I/O on 11 of the 15 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 Arlo Technologies

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Arlo Technologies, Inc., together with its subsidiaries, provides a cloud-based platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. The company offers Arlo Essential Cameras and Doorbells (2nd Generation) delivers smart home protection, including automated privacy shield, 180-degree field of view, and 2K video resolution; Arlo Home Security System, an all-in-one multi-sensor that provides access to security experts for monitoring and responding to emergency situations; Arlo Pro 5S, a wireless 2K video resolution security camera; Arlo Go 2, a camera for monitoring remote areas, large properties, construction sites, vacation homes, boat or RV slips, and hard-to-access areas; Arlo Ultra 2 provides 4K video with HDR, an ultra-wide, 180-degree field of view, auto zoom and tracking on moving objects, and color night vision; and Arlo Floodlight Camera, a wire-free floodlight camera. It provides security system accessories, charging accessories, and mounts. In addition, the company offers Arlo Secure subscriptions, including emergency response secure plus plan; 2K secure plan and 4K secure plus plan cloud-based video recording; unlimited cameras; advanced object detection; smart interactive notifications; smoke and CO alarm detection; cloud-based activity zone; call a friend; and 24/7 priority support and professional monitoring services; Arlo Total Security, a subscription which provides 24/7 professional monitoring and security hardware; Arlo Safe, a personal safety app that offers one-touch emergency response, family safety, and crash detection and response services; and Arlo SmartCloud, a SaaS solution that delivers security cloud services for business. It sells its products through retailers, wholesale distributors, broadcast channels, wireless carriers, and security solution providers, as well as through its website. Arlo Technologies, Inc. was incorporated in 2018 and is headquartered in Carlsbad, California.