Critical Survey: CPS Technologies (NASDAQ:CPSH) and Data I/O (NASDAQ:DAIO)

CPS Technologies (NASDAQ:CPSHGet Free Report) and Data I/O (NASDAQ:DAIOGet Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Risk and Volatility

CPS Technologies has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Data I/O has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for CPS Technologies and Data I/O, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CPS Technologies 1 1 1 0 2.00
Data I/O 1 1 2 1 2.60

CPS Technologies presently has a consensus price target of $6.00, indicating a potential upside of 32.45%. Data I/O has a consensus price target of $5.11, indicating a potential upside of 82.50%. Given Data I/O’s stronger consensus rating and higher probable upside, analysts plainly believe Data I/O is more favorable than CPS Technologies.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CPS Technologies $21.12 million 3.86 -$3.13 million ($0.04) -113.25
Data I/O $21.77 million 1.21 -$3.09 million ($0.40) -7.00

Data I/O has higher revenue and earnings than CPS Technologies. CPS Technologies 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.

Insider & Institutional Ownership

11.2% of CPS Technologies shares are held by institutional investors. Comparatively, 37.0% of Data I/O shares are held by institutional investors. 15.6% of CPS Technologies shares are held by insiders. Comparatively, 2.6% of Data I/O shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
CPS Technologies -1.94% -3.96% -3.01%
Data I/O -16.16% -21.44% -15.24%

Summary

Data I/O beats CPS Technologies on 8 of the 15 factors compared between the two stocks.

About CPS Technologies

(Get Free Report)

CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.

About Data I/O

(Get Free Report)

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.

Receive News & Ratings for CPS Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CPS Technologies and related companies with MarketBeat.com's FREE daily email newsletter.