Digi International Inc. (DGII) vs Harmonic Inc. (HLIT)

Digi International Inc. and Harmonic Inc. are both Communication Equipment companies. Digi International Inc. is the larger, with a market value of $2.4B against $1.0B — 2.3× the size. Harmonic Inc. has negative trailing earnings, so its P/E is not meaningful; Digi International Inc. trades at 48.0×. Digi International Inc. grew revenue faster over the last twelve months: 20.3% against −16.0%. Digi International Inc. has the higher net margin (9.63% vs −7.81%) and the lower return on invested capital (5.76% vs 15.9%). Across the 20 metrics below, Digi International Inc. leads on 11 and Harmonic Inc. on 9.

Valuation

Metric DGII HLIT Communication Equipment median
P/E 48.04 n/m 29.86
P/S 4.66 2.27 1.68
P/B 3.44 2.72 1.72
Price to free cash flow 17.31 n/m 21.71
EV/EBITDA 21.74 7.61 14.04
EV/Sales 4.85 2.03 1.76
Earnings yield 2.08% (3.26%) (0.87%)
Free cash flow yield 5.78% (2.42%) 0.68%

Profitability

Metric DGII HLIT Communication Equipment median
Gross margin 63.82% 49.29% 39.34%
Operating margin 13.94% 15.15% 2.43%
Net margin 9.63% (7.81%) (0.64%)
Free cash flow margin 26.92% (5.50%) 0.27%
Return on equity 7.46% (8.60%) 0.00%
Return on assets 5.62% (5.22%) (0.10%)
Return on invested capital 5.76% 15.85% 1.29%

Growth

Metric DGII HLIT Communication Equipment median
Revenue growth (TTM) 20.26% (16.04%) 9.66%
EPS growth (last fiscal year) 77.05% (215.15%) 31.29%
Revenue growth, 5-year CAGR 9.03% (0.99%) 4.92%
Net income growth, 5-year CAGR 37.14% 0.00% 0.00%

Health

Metric DGII HLIT Communication Equipment median
Debt to equity 0.16 0.10 0.05
Current ratio 1.13 2.43 1.99
Net debt to EBITDA 1.52 (0.15) 0.93

Dividend

Metric DGII HLIT Communication Equipment median
Dividend yield — — 1.10%
Payout ratio — — 0.44

Size

Metric DGII HLIT Communication Equipment median
Market cap 2.37b 1.01b 495.24m

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