Digi International (NASDAQ: DGII) and NetApp (NASDAQ:NTAP) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
Risk and Volatility
Digi International has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, NetApp has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Digi International and NetApp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Digi International currently has a consensus target price of $14.50, indicating a potential upside of 39.42%. NetApp has a consensus target price of $55.33, indicating a potential downside of 10.98%. Given Digi International’s stronger consensus rating and higher probable upside, research analysts plainly believe Digi International is more favorable than NetApp.
NetApp pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Digi International does not pay a dividend. NetApp pays out -1,000.0% of its earnings in the form of a dividend.
This table compares Digi International and NetApp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Digi International and NetApp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digi International||$181.63 million||1.55||$9.36 million||$0.09||115.57|
|NetApp||$5.52 billion||3.02||$509.00 million||($0.08)||-777.00|
NetApp has higher revenue and earnings than Digi International. NetApp is trading at a lower price-to-earnings ratio than Digi International, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
77.9% of Digi International shares are owned by institutional investors. Comparatively, 95.0% of NetApp shares are owned by institutional investors. 6.8% of Digi International shares are owned by insiders. Comparatively, 0.5% of NetApp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
NetApp beats Digi International on 9 of the 16 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.
NetApp, Inc. (NetApp) provides software, systems and services to manage and store customer data. The Company enables enterprises, service providers, governmental organizations, and partners to envision, deploy and evolve their information technology (IT) environments. The Company offers a portfolio of products and services that satisfy a range of customer workloads across different data types and deployment models. Its data management and storage offerings help manage business productivity, performance and profitability, while providing investment protection and asset utilization. The Company’s FlexPod portfolio includes FlexPod Datacenter for core enterprise data centers and service providers, FlexPod Express for medium-sized businesses and branch offices, and FlexPod Select for data-intensive workloads. The portfolio is validated with hypervisors, operating systems, systems management tools and cloud management platforms.
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