Financial Review: Digi International (DGII) & Ixia (XXIA)
Digi International (NASDAQ: DGII) and Ixia (NASDAQ:XXIA) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.
This table compares Digi International and Ixia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Digi International has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Ixia has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Digi International and Ixia, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Digi International presently has a consensus price target of $15.33, suggesting a potential upside of 68.50%. Ixia has a consensus price target of $19.65, suggesting a potential upside of 0.00%. Given Digi International’s stronger consensus rating and higher probable upside, research analysts clearly believe Digi International is more favorable than Ixia.
Institutional & Insider Ownership
78.3% of Digi International shares are held by institutional investors. Comparatively, 63.6% of Ixia shares are held by institutional investors. 6.9% of Digi International shares are held by insiders. Comparatively, 24.4% of Ixia shares 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.
Earnings and Valuation
This table compares Digi International and Ixia’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Digi International||$186.98 million||1.29||$16.27 million||$0.33||27.58|
Digi International has higher revenue and earnings than Ixia. Digi International is trading at a lower price-to-earnings ratio than Ixia, indicating that it is currently the more affordable of the two stocks.
Digi International beats Ixia on 10 of the 11 factors compared between the two stocks.
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.
Ixia is a provider of physical and virtual network application performance and security resilience solutions. The Company’s product solutions consist of its hardware platforms, software applications and services, including warranty and maintenance offerings. The Company helps its customers to validate the performance and security resilience of their applications and networks. The Company offers network test hardware platforms with interchangeable interfaces, using a common set of applications and Application Programing Interfaces (APIs). The Company provides its solutions to network equipment manufacturers (NEMs), service providers, and enterprise and government organizations. The Company’s product solutions consist of its hardware platforms, such as chassis, interface cards and appliances, software application tools, and services, including its warranty and maintenance offerings and professional services.
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