Digi International (NASDAQ:DGII – Get Free Report) and Calix (NYSE:CALX – Get Free Report) are both mid-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
Risk & Volatility
Digi International has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Calix has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Digi International and Calix, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digi International | 0 | 2 | 5 | 0 | 2.71 |
| Calix | 0 | 2 | 7 | 0 | 2.78 |
Digi International currently has a consensus price target of $82.40, suggesting a potential upside of 12.54%. Calix has a consensus price target of $63.86, suggesting a potential upside of 79.20%. Given Calix’s stronger consensus rating and higher possible upside, analysts plainly believe Calix is more favorable than Digi International.
Profitability
This table compares Digi International and Calix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digi International | 9.63% | 12.16% | 8.48% |
| Calix | 4.61% | 6.17% | 4.90% |
Institutional & Insider Ownership
95.9% of Digi International shares are owned by institutional investors. Comparatively, 98.1% of Calix shares are owned by institutional investors. 3.4% of Digi International shares are owned by company insiders. Comparatively, 17.4% of Calix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Digi International and Calix”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digi International | $430.22 million | 6.46 | $40.80 million | $1.26 | 58.11 |
| Calix | $1.00 billion | 2.24 | $17.88 million | $0.74 | 48.15 |
Digi International has higher earnings, but lower revenue than Calix. Calix is trading at a lower price-to-earnings ratio than Digi International, indicating that it is currently the more affordable of the two stocks.
About Digi International
Digi International Inc. provides business and mission-critical Internet of Things (IoT) products, services, and solutions in the United States, Europe, the Middle East, Africa, and internationally. The company operates in two segments, IoT Products & Services, and IoT Solutions. It offers cellular routers for mission-critical wireless connectivity; cellular modules to embed cellular communications abilities into the products to deploy and manage intelligent and secure cellular connected products; console servers to provide secure and remote access to network equipment in data centers and at edge locations; and radio frequency products, including embedded wireless modules, off-the-shelf gateways, modems, and adapters under the Digi XBee brand. The company provides embedded system products under the Digi Connect, ConnectCore, and Rabbit brands; and infrastructure management products, comprising of serial servers, which offers serial port-to-Ethernet integration of devices into wired Ethernet networks; and universal serial bus solutions. In addition, it offers Digi Remote Manager and Lighthouse, a recurring revenue cloud-based service that provides a secure environment for customers to manage their connected device deployment and network devices; SmartSense by Digi for monitoring wirelessly the temperature of food and other perishable or sensitive goods, monitor facilities or pharmacies by tracking the completion of operating tasks by employees, as well as quality control and incident management for food service, healthcare, and transportation/logistics industries; and Ventus which provides MNaaS solutions. Further, the company provides professional services, such as site planning, implementation management, application development, and customer training; data plan subscriptions; and enhanced technical support services, as well as Digi Wireless Design Services. Digi International Inc. was incorporated in 1985 and is headquartered in Hopkins, Minnesota.
About Calix
Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.
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