Head to Head Analysis: Airgain (NASDAQ:AIRG) versus Digi International (NASDAQ:DGII)

Digi International (NASDAQ:DGII) and Airgain (NASDAQ:AIRG) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Valuation and Earnings

This table compares Digi International and Airgain”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digi International	$430.22 million	6.67	$40.80 million	$1.26	60.01
Airgain	$51.78 million	1.17	-$6.43 million	($0.56)	-8.23

Digi International has higher revenue and earnings than Airgain. Airgain is trading at a lower price-to-earnings ratio than Digi International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Digi International and Airgain’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%
Airgain	-13.65%	-13.72%	-8.74%

Volatility & Risk

Digi International has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Airgain has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Digi International and Airgain, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digi International	0	2	5	0	2.71
Airgain	1	0	4	0	2.60

Digi International currently has a consensus target price of $82.40, suggesting a potential upside of 8.98%. Airgain has a consensus target price of $7.70, suggesting a potential upside of 67.03%. Given Airgain’s higher possible upside, analysts plainly believe Airgain is more favorable than Digi International.

Insider & Institutional Ownership

95.9% of Digi International shares are held by institutional investors. Comparatively, 52.8% of Airgain shares are held by institutional investors. 3.4% of Digi International shares are held by company insiders. Comparatively, 17.5% of Airgain shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Digi International beats Airgain on 12 of the 14 factors compared between 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 Airgain

Airgain, Inc. provides wireless connectivity solutions that creates and delivers embedded components, external antennas, and integrated systems worldwide. The company's products include MaxBeam embedded antennas; profile embedded antennas; profile contour embedded antennas; profile ceramic embedded antenna; ultra embedded antennas; and SmartMax embedded antennas. It offers embedded and NimbeLink embedded moderms; custom cellular solutions; cellular IoT development; cellular IoT development kits; and IoT data plans. In addition, the company provides 5G connectivity, smart repeaters, and fixed wireless access; asset tracking solutions, devices, and partners; and external antennas, fleet antennas, IoT antennas, network antennas, vehicle networking, partner solutions, and accessories. It offers its products under the Antenna Plus brand. It serves industrial, consumer, automotive fleet, enterprise, energy, medical, transportation, agriculture, services, and public safety markets. The company was formerly known as AM Group and changed its name to Airgain, Inc. in 2004. Airgain, Inc. was incorporated in 1995 and is headquartered in San Diego, California.