Contrasting Digi International (NASDAQ:DGII) & Its Rivals

Digi International (NASDAQ: DGII) is one of 67 public companies in the “Communications & Networking” industry, but how does it contrast to its rivals? We will compare Digi International to related companies based on the strength of its profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

This table compares Digi International and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Digi International $186.98 million $16.27 million 30.00
Digi International Competitors $2.88 billion $624.22 million 27.17

Digi International’s rivals have higher revenue and earnings than Digi International. Digi International is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

78.3% of Digi International shares are held by institutional investors. Comparatively, 64.1% of shares of all “Communications & Networking” companies are held by institutional investors. 6.9% of Digi International shares are held by insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Digi International and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digi International 5.16% 3.27% 2.97%
Digi International Competitors -2.19% -5.97% 0.32%

Volatility and Risk

Digi International has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Digi International’s rivals have a beta of 1.17, indicating that their average share price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Digi International and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digi International 0 1 3 0 2.75
Digi International Competitors 369 2415 3947 158 2.57

Digi International currently has a consensus price target of $14.50, suggesting a potential upside of 38.10%. As a group, “Communications & Networking” companies have a potential upside of 21.98%. Given Digi International’s stronger consensus rating and higher possible upside, equities analysts clearly believe Digi International is more favorable than its rivals.

Summary

Digi International beats its rivals on 9 of the 13 factors compared.

Digi International Company Profile

Digi International Inc. is a provider of mission and business-critical machine-to-machine (M2M) and Internet-of-Things (IoT) connectivity products and services. The Company creates connected products and deploys and manages critical communications infrastructures in a range of environments. It offers four categories of hardware products: cellular routers and gateways, radio frequency (RF), embedded and network products. The Company’s cellular product category includes its cellular routers and all gateways. The Company’s RF product category includes its XBee modules, as well as other RF Solutions. Its embedded product category includes Digi Connect and Rabbit embedded systems on module and single board computers. Its network product category includes console and serial servers and universal serial bus (USB) connected products. The Company’s service offerings include wireless design services, Digi Device Cloud (which includes Digi Remote Manager) and enterprise support services.

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