Digi International (NASDAQ: DGII) is one of 70 public companies in the “Communications & Networking” industry, but how does it weigh in compared to its rivals? We will compare Digi International to similar businesses based on the strength of its earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Risk & Volatility

Digi International has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Digi International’s rivals have a beta of 1.14, suggesting that their average stock price is 14% 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 383 2512 4041 161 2.56

Digi International currently has a consensus target price of $14.50, suggesting a potential upside of 47.96%. As a group, “Communications & Networking” companies have a potential upside of 20.94%. Given Digi International’s stronger consensus rating and higher probable upside, analysts plainly believe Digi International is more favorable than its rivals.

Insider & Institutional Ownership

78.2% of Digi International shares are held by institutional investors. Comparatively, 62.9% of shares of all “Communications & Networking” companies are held by institutional investors. 6.9% of Digi International shares are held by insiders. Comparatively, 13.2% of shares of all “Communications & Networking” companies are held 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.

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% 3.24% 2.95%
Digi International Competitors -2.33% -5.94% 0.30%

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Digi International $181.63 million $9.36 million 28.00
Digi International Competitors $3.30 billion $420.04 million -12.55

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.

Summary

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

About Digi International

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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