Contrasting InterDigital (IDCC) & Digi International (NASDAQ:DGII)

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

Volatility and Risk

InterDigital has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Digi International has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Dividends

InterDigital pays an annual dividend of $1.20 per share and has a dividend yield of 1.6%. Digi International does not pay a dividend. InterDigital pays out 13.0% of its earnings in the form of a dividend.

Profitability

This table compares InterDigital and Digi International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
InterDigital 45.92% 44.58% 19.04%
Digi International 4.74% 3.17% 2.86%

Earnings and Valuation

This table compares InterDigital and Digi International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
InterDigital $712.48 million 3.64 $534.85 million $9.23 8.09
Digi International $186.98 million 1.33 $16.27 million $0.33 28.33

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for InterDigital and Digi International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InterDigital 0 3 2 0 2.40
Digi International 0 0 4 0 3.00

InterDigital presently has a consensus price target of $91.33, suggesting a potential upside of 22.35%. Digi International has a consensus price target of $15.33, suggesting a potential upside of 63.99%. Given Digi International’s stronger consensus rating and higher possible upside, analysts clearly believe Digi International is more favorable than InterDigital.

Institutional and Insider Ownership

71.0% of InterDigital shares are owned by institutional investors. Comparatively, 78.3% of Digi International shares are owned by institutional investors. 1.9% of InterDigital shares are owned by company insiders. Comparatively, 6.9% of Digi International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

About InterDigital

InterDigital, Inc. designs and develops technologies for wireless communications. The Company is focused on three technology areas: cellular wireless technology, Internet of things (IoT) technology, and, through its Hillcrest Laboratories, Inc. (Hillcrest Labs) subsidiary, sensor and sensor fusion technology. It offers a range of technologies that are used in digital cellular and wireless products and networks, including second generation (2G), third generation (3G), fourth generation (4G) and IEEE 802-related products and networks. Products incorporating its inventions include mobile devices, such as cellular phones, tablets, notebook computers and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; components, dongles and modules for wireless devices, and IoT devices and software platforms. The Company is developing a range of technologies in the areas of video compression and delivery, security, analytics, and other areas.

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.

Receive News & Ratings for InterDigital Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for InterDigital Inc. and related companies with our FREE daily email newsletter.

 


Latest News

Los Angeles Dodgers Waiting But Magic Number Down to One
Los Angeles Dodgers Waiting But Magic Number Down to One
Young Girl Hit by Foul Ball Rushed to Hospital
Young Girl Hit by Foul Ball Rushed to Hospital
New Home Run Record Reached in Major League Baseball
New Home Run Record Reached in Major League Baseball
Will 2017 MLB Season End with No 20-Game Winner?
Will 2017 MLB Season End with No 20-Game Winner?
Cleveland Indians Winning Streak Snapped at 22
Cleveland Indians Winning Streak Snapped at 22
Tigers Player Might Play All Nine Positions During Same Game
Tigers Player Might Play All Nine Positions During Same Game


Leave a Reply

 
© 2006-2017 BBNS.