Ciena Corp (CIEN)vsDigi International Inc (DGII)
CIEN
Ciena Corp
$437.70
+1.94%
TECHNOLOGY · Cap: $60.74B
DGII
Digi International Inc
$50.66
+2.14%
TECHNOLOGY · Cap: $1.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Ciena Corp generates 1042% more annual revenue ($5.12B vs $448.82M). DGII leads profitability with a 9.4% profit margin vs 4.5%. DGII appears more attractively valued with a PEG of 0.83. DGII earns a higher WallStSmart Score of 57/100 (C).
CIEN
Buy54
out of 100
Grade: C-
DGII
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-299.5%
Fair Value
$74.41
Current Price
$437.70
$363.29 premium
Margin of Safety
-35.9%
Fair Value
$34.14
Current Price
$50.66
$16.52 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.1% year-over-year
Large-cap with strong market position
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
17.9% revenue growth
Areas to Watch
Expensive relative to growth rate
2.3% earnings growth
4.5% margin — thin
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.9% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CIEN
The strongest argument for CIEN centers on Revenue Growth, Market Cap. Revenue growth of 33.1% demonstrates continued momentum.
Bull Case : DGII
The strongest argument for DGII centers on Debt/Equity, PEG Ratio, Price/Book. Revenue growth of 17.9% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.
Bear Case : CIEN
The primary concerns for CIEN are PEG Ratio, EPS Growth, Profit Margin. A P/E of 270.1x leaves little room for execution misses. Thin 4.5% margins leave little buffer for downturns.
Bear Case : DGII
The primary concerns for DGII are Market Cap, Return on Equity, Piotroski F-Score. A P/E of 44.3x leaves little room for execution misses.
Key Dynamics to Monitor
CIEN profiles as a hypergrowth stock while DGII is a growth play — different risk/reward profiles.
CIEN carries more volatility with a beta of 1.09 — expect wider price swings.
CIEN is growing revenue faster at 33.1% — sustainability is the question.
CIEN generates stronger free cash flow (154M), providing more financial flexibility.
Bottom Line
DGII scores higher overall (57/100 vs 54/100) and 17.9% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ciena Corp
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ciena Corporation provides hardware, software, and network services that support the transport, routing, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks worldwide. The company is headquartered in Hanover, Maryland.
Visit Website →Digi International Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Digi International Inc. provides mission-critical and enterprise Internet of Things (IoT) products, services and solutions in the United States and internationally. The company is headquartered in Hopkins, Minnesota.
Visit Website →Compare with Other COMMUNICATION EQUIPMENT Stocks
Want to dig deeper into these stocks?