Financial Contrast: Aehr Test Systems (AEHR) and Data I/O (DAIO)

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

Analyst Ratings

This is a breakdown of current recommendations for Aehr Test Systems and Data I/O, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aehr Test Systems 0 0 0 0 N/A
Data I/O 0 0 2 0 3.00

Data I/O has a consensus target price of $12.00, suggesting a potential upside of 73.91%. Given Data I/O’s higher possible upside, analysts plainly believe Data I/O is more favorable than Aehr Test Systems.

Profitability

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

Net Margins Return on Equity Return on Assets
Aehr Test Systems -1.58% -1.41% -0.80%
Data I/O 13.35% 19.53% 14.28%

Valuation and Earnings

This table compares Aehr Test Systems and Data I/O’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aehr Test Systems $18.90 million 2.85 -$5.65 million ($0.29) -8.45
Data I/O $34.05 million 1.68 $5.44 million N/A N/A

Data I/O has higher revenue and earnings than Aehr Test Systems.

Insider and Institutional Ownership

22.6% of Aehr Test Systems shares are owned by institutional investors. Comparatively, 45.9% of Data I/O shares are owned by institutional investors. 21.9% of Aehr Test Systems shares are owned by insiders. Comparatively, 8.6% of Data I/O shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Aehr Test Systems has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Data I/O has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Summary

Data I/O beats Aehr Test Systems on 10 of the 12 factors compared between the two stocks.

Aehr Test Systems Company Profile

Aehr Test Systems designs, engineers, manufactures, and sells test and burn-in equipment used in the semiconductor industry worldwide. The company offers full wafer contact test systems, test during burn-in systems, test fixtures, die carriers, and related accessories; and Advanced Burn-in and Test System family of packaged part burn-in and test systems, which perform test during burn-in of complex devices, such as digital signal processors, microprocessors, microcontrollers, and systems-on-a-chip, as well as offer individual temperature control for high-power advanced logic devices. The company also provides FOX systems, which are full wafer contact parallel test and burn-in systems designed to make contact with all pads of a wafer simultaneously; WaferPak cartridge that includes a full-wafer probe card for use in testing wafers in FOX systems; DiePak carrier, a reusable and temporary package that enables IC manufacturers to perform final test and burn-in of singulated bare die; and test fixtures that hold the devices undergoing test or burn-in and electrically connect the devices under test to the system electronics. In addition, the company offers customer service and support programs, including system installation, system repair, applications engineering support, spare parts inventory, customer training, and documentation services. It markets and sells its products to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers, and burn-in and test service companies through a network of distributors and sales representatives. Aehr Test Systems was founded in 1977 and is headquartered in Fremont, California.

Data I/O Company Profile

Data I/O Corporation designs, manufactures, and sells programming 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 necessary for the ICs. The company provides PSV handlers off-line automated programming systems; and RoadRunner and RoadRunner3 series handlers, an in-line automated programming systems. It also offers SentriX, a security provisioning system; LumenX Programmer; non-automated programming systems, such as FlashPAK III programmer; and Unifamily programmers, an off-line, low volume, and engineering non-automated system. In addition, the company provides 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, and industrial/Internet of things and their electronic manufacturing service contract manufacturers through direct sales, internal telesales, and indirect sales representatives and distributors. Data I/O Corporation was founded in 1969 and is headquartered in Redmond, Washington.

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