Digi International Inc. (DGII) vs Extreme Networks, Inc. (EXTR)

Digi International Inc. and Extreme Networks, Inc. are both Communication Equipment companies. Digi International Inc. and Extreme Networks, Inc. are of similar size ($2.9B and $2.9B). Digi International Inc. trades at the lower P/E: 60.2× against 67.3×. Digi International Inc. grew revenue faster over the last twelve months: 20.3% against 12.6%. Digi International Inc. has the higher net margin (9.63% vs 3.28%) and the lower return on invested capital (5.76% vs 96.6%). Across the 22 metrics below, Digi International Inc. leads on 15 and Extreme Networks, Inc. on 7.

Valuation

Metric DGII EXTR Communication Equipment median
P/E 60.23 67.25 33.61
P/S 5.84 2.23 2.16
P/B 4.32 32.25 2.40
Price to free cash flow 21.70 30.31 25.02
EV/EBITDA 27.04 28.83 13.78
EV/Sales 6.03 2.19 2.27
Earnings yield 1.66% 1.49% (0.65%)
Free cash flow yield 4.61% 3.30% 1.61%

Profitability

Metric DGII EXTR Communication Equipment median
Gross margin 63.82% 61.48% 39.47%
Operating margin 13.94% 4.88% 2.39%
Net margin 9.63% 3.28% (0.74%)
Free cash flow margin 26.92% 7.42% 1.39%
Return on equity 7.46% 54.64% (1.91%)
Return on assets 5.62% 3.61% (0.20%)
Return on invested capital 5.76% 96.62% 0.72%

Growth

Metric DGII EXTR Communication Equipment median
Revenue growth (TTM) 20.26% 12.59% 11.48%
EPS growth (last fiscal year) 77.05% 616.67% —
Revenue growth, 5-year CAGR 9.03% 4.92% 4.92%
Net income growth, 5-year CAGR 37.14% 85.15% 0.00%

Health

Metric DGII EXTR Communication Equipment median
Debt to equity 0.16 1.85 0.06
Current ratio 1.13 0.93 2.01
Net debt to EBITDA 1.52 (0.49) 0.67

Dividend

Metric DGII EXTR Communication Equipment median
Dividend yield — — 2.63%
Payout ratio 0.00 0.00 0.00

Size

Metric DGII EXTR Communication Equipment median
Market cap 2.91b 2.86b 563.45m

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