Digi International Inc. (DGII) vs Frequency Electronics, Inc. (FEIM)

Digi International Inc. and Frequency Electronics, Inc. are both Communication Equipment companies. Digi International Inc. is the larger, with a market value of $2.9B against $953.0M — 3.1× the size. Digi International Inc. trades at the lower P/E: 60.2× against 351×. Digi International Inc. grew revenue faster over the last twelve months: 20.3% against 6.30%. Digi International Inc. has the higher net margin (9.63% vs 3.68%) and the higher return on invested capital (5.76% vs 1.96%). Across the 21 metrics below, Digi International Inc. leads on 18 and Frequency Electronics, Inc. on 3.

Valuation

Metric DGII FEIM Communication Equipment median
P/E 60.23 350.91 33.61
P/S 5.84 12.42 2.16
P/B 4.32 7.55 2.40
Price to free cash flow 21.70 n/m 25.02
EV/EBITDA 27.04 463.38 13.78
EV/Sales 6.03 11.67 2.27
Earnings yield 1.66% 0.28% (0.65%)
Free cash flow yield 4.61% (0.02%) 1.61%

Profitability

Metric DGII FEIM Communication Equipment median
Gross margin 63.82% 33.03% 39.47%
Operating margin 13.94% 2.52% 2.39%
Net margin 9.63% 3.68% (0.74%)
Free cash flow margin 26.92% (0.25%) 1.39%
Return on equity 7.46% 3.04% (1.91%)
Return on assets 5.62% 2.17% (0.20%)
Return on invested capital 5.76% 1.96% 0.72%

Growth

Metric DGII FEIM Communication Equipment median
Revenue growth (TTM) 20.26% 6.30% 11.48%
EPS growth (last fiscal year) 77.05% (103.63%) —
Revenue growth, 5-year CAGR 9.03% 3.11% 4.92%
Net income growth, 5-year CAGR 37.14% 0.00% 0.00%

Health

Metric DGII FEIM Communication Equipment median
Debt to equity 0.16 0.00 0.06
Current ratio 1.13 5.34 2.01
Net debt to EBITDA 1.52 (0.92) 0.67

Dividend

Metric DGII FEIM Communication Equipment median
Dividend yield — 0.90% 2.63%
Payout ratio 0.00 0.00 0.00

Size

Metric DGII FEIM Communication Equipment median
Market cap 2.91b 953.04m 563.45m

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