Digi International Inc (DGII)vsUbiquiti Networks Inc (UI)
DGII
Digi International Inc
$50.66
+2.14%
TECHNOLOGY · Cap: $1.87B
UI
Ubiquiti Networks Inc
$839.05
+0.55%
TECHNOLOGY · Cap: $50.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Ubiquiti Networks Inc generates 562% more annual revenue ($2.97B vs $448.82M). UI leads profitability with a 29.9% profit margin vs 9.4%. UI appears more attractively valued with a PEG of 0.82. UI earns a higher WallStSmart Score of 73/100 (B).
DGII
Buy57
out of 100
Grade: C
UI
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-35.9%
Fair Value
$34.14
Current Price
$50.66
$16.52 premium
Margin of Safety
-4.0%
Fair Value
$685.62
Current Price
$839.05
$153.43 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
17.9% revenue growth
Every $100 of equity generates 136 in profit
Strong operational efficiency at 35.9%
Revenue surging 35.8% year-over-year
Earnings expanding 70.8% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Smaller company, higher risk/reward
ROE of 6.9% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 50.0x book value
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : UI
The strongest argument for UI centers on Return on Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 29.9% and operating margin at 35.9%. Revenue growth of 35.8% demonstrates continued momentum.
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.
Bear Case : UI
The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 57.0x leaves little room for execution misses.
Key Dynamics to Monitor
UI carries more volatility with a beta of 1.37 — expect wider price swings.
UI is growing revenue faster at 35.8% — sustainability is the question.
UI generates stronger free cash flow (259M), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
UI scores higher overall (73/100 vs 57/100), backed by strong 29.9% margins and 35.8% revenue growth. Both earn "Strong 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.
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 →Ubiquiti Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.
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