Digi International (DGII) vs. Ixia (XXIA) Financial Analysis
Digi International (NASDAQ: DGII) and Ixia (NASDAQ:XXIA) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.
Institutional & Insider Ownership
76.9% of Digi International shares are owned by institutional investors. Comparatively, 63.6% of Ixia shares are owned by institutional investors. 6.9% of Digi International shares are owned by company insiders. Comparatively, 24.4% of Ixia shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Digi International and Ixia’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Digi International||$186.98 million||1.32||$16.27 million||$0.33||28.11|
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.
This is a summary of recent ratings 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 target price of $15.33, indicating a potential upside of 65.32%. Ixia has a consensus target price of $19.65, indicating a potential upside of 0.00%. Given Digi International’s stronger consensus rating and higher possible upside, equities analysts plainly believe Digi International is more favorable than Ixia.
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 & Volatility
Digi International has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Ixia has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
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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