Comparing Acorn Energy (NASDAQ:ACFN) and Data I/O (NASDAQ:DAIO)

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

Volatility & Risk

Data I/O has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Acorn Energy has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.

Insider & Institutional Ownership

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

Earnings and Valuation

This table compares Data I/O and Acorn Energy”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	1.28	-$5.24 million	($0.93)	-3.15
Acorn Energy	$11.48 million	4.37	$2.51 million	$0.61	32.79

Acorn Energy has lower revenue, but higher earnings 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.

Profitability

This table compares Data I/O and Acorn Energy’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%
Acorn Energy	16.12%	10.06%	6.32%

Analyst Ratings

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

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

Data I/O currently has a consensus target price of $5.11, suggesting a potential upside of 74.40%. Given Data I/O’s stronger consensus rating and higher possible upside, equities analysts plainly 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 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 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.