Head to Head Survey: Data I/O (NASDAQ:DAIO) and Identiv (NASDAQ:INVE)
by Mitch Edgeman · The Markets DailyData I/O (NASDAQ:DAIO – Get Free Report) and Identiv (NASDAQ:INVE – Get Free Report) are both small-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Institutional and Insider Ownership
37.0% of Data I/O shares are held by institutional investors. Comparatively, 65.2% of Identiv shares are held by institutional investors. 4.1% of Data I/O shares are held by insiders. Comparatively, 3.6% of Identiv 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.
Profitability
This table compares Data I/O and Identiv’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% |
| Identiv | -62.93% | -11.02% | -10.34% |
Earnings & Valuation
This table compares Data I/O and Identiv”s 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 | 1.22 | -$5.24 million | ($0.93) | -3.01 |
| Identiv | $24.27 million | 2.68 | -$18.00 million | ($0.66) | -4.06 |
Data I/O has higher earnings, but lower revenue than Identiv. Identiv is trading at a lower price-to-earnings ratio than Data I/O, 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, Identiv has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Data I/O and Identiv, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Data I/O | 1 | 1 | 1 | 2 | 2.80 |
| Identiv | 1 | 2 | 0 | 0 | 1.67 |
Data I/O presently has a consensus price target of $5.11, suggesting a potential upside of 82.50%. Identiv has a consensus price target of $3.40, suggesting a potential upside of 26.87%. Given Data I/O’s stronger consensus rating and higher possible upside, analysts plainly believe Data I/O is more favorable than Identiv.
Summary
Data I/O beats Identiv on 9 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 Identiv
Identiv, Inc., a security technology company, that provides secure identification and physical security solutions that secure things, data, and physical places worldwide. It operates in two segments, Identity and Premises. The Identity segment offers products and solutions that enables secure access to information serving the logical access and cyber security markets, as well as protecting connected objects and information using radio-frequency identification embedded security. The Premises segment provides solutions for premises security market, such as access control, video surveillance, analytics, audio, access readers, and identities to government facilities, schools, utilities, hospitals, stores, and apartment buildings. The company sells its products through dealers, systems integrators, value added resellers, and resellers. The company was formerly known as Identive Group, Inc. and changed its name to Identiv, Inc. in May 2014. Identiv, Inc. was founded in 1990 and is headquartered in Fremont, California.