Contrasting Acme Packet (APKT) & Digi International (DGII)

Digi International (NASDAQ: DGII) and Acme Packet (NASDAQ:APKT) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Digi International and Acme Packet, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digi International 0 0 4 0 3.00
Acme Packet 0 0 0 0 N/A

Digi International presently has a consensus target price of $14.50, indicating a potential upside of 37.44%.

Profitability

This table compares Digi International and Acme Packet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digi International 1.34% 1.91% 1.74%
Acme Packet N/A N/A N/A

Insider & Institutional Ownership

76.4% of Digi International shares are held by institutional investors. 6.8% of Digi International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Digi International and Acme Packet’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digi International $181.63 million 1.57 $9.36 million $0.09 117.24
Acme Packet N/A N/A N/A ($0.08) N/A

Digi International has higher revenue and earnings than Acme Packet. Acme Packet is trading at a lower price-to-earnings ratio than Digi International, indicating that it is currently the more affordable of the two stocks.

Summary

Digi International beats Acme Packet on 8 of the 8 factors compared between the two stocks.

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.

Acme Packet Company Profile

Acme Packet, Inc. provides session delivery network solutions, which enable the delivery of collaboration services, applications, and next-generation voice, video, data and unified communication and collaboration services and applications across Internet Protocol (IP), networks. The Company’s session delivery network solutions are used by over 1,925 Acme Packet customers in 109 countries. The Company’s customers include fixed line, cable, mobile, transit and over-the-top (OTT), communication service providers, as well as enterprises, contacts centers and government organizations. The Company sells its products and support services through over 330 distribution partners and through its direct sales force. In April 2012, the Company acquired IPTEGO GmbH.

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