Financial Contrast: Digi International (DGII) vs. A10 Networks (ATEN)

Digi International (NASDAQ: DGII) and A10 Networks (NYSE:ATEN) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Digi International and A10 Networks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digi International 0 0 4 0 3.00
A10 Networks 0 2 1 0 2.33



Digi International currently has a consensus price target of $14.00, suggesting a potential upside of 16.67%. A10 Networks has a consensus price target of $7.75, suggesting a potential upside of 21.09%. Given A10 Networks’ higher possible upside, analysts clearly believe A10 Networks is more favorable than Digi International.

Volatility and Risk

Digi International has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, A10 Networks has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Earnings and Valuation

This table compares Digi International and A10 Networks’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digi International $181.63 million 1.79 $9.36 million $0.37 32.43
A10 Networks $230.00 million 1.97 -$20.94 million N/A N/A

Digi International has higher earnings, but lower revenue than A10 Networks.

Profitability

This table compares Digi International and A10 Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digi International 0.39% 1.41% 1.28%
A10 Networks -6.94% -17.63% -7.12%

Institutional and Insider Ownership

80.8% of Digi International shares are owned by institutional investors. Comparatively, 65.5% of A10 Networks shares are owned by institutional investors. 6.8% of Digi International shares are owned by insiders. Comparatively, 31.6% of A10 Networks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Digi International beats A10 Networks on 8 of the 12 factors compared between the two stocks.

About Digi International

Digi International Inc. provides Internet of Things networking hardware products and solutions. It operates in two segments, Machine-to-Machine and Solutions. It offers cellular routers that provide connectivity for devices over a cellular data network; cellular gateway products that enable devices or groups of devices to be networked in locations where there is no existing network or where access to a network is prohibited; radio frequency products that utilize a range of wireless protocols for PC-to-device or device-to-device connectivity; and Connect, Rabbit, and ARM-based embedded systems on module and single board computers for medical, transportation, and industrial device manufacturers. It also provides console and serial servers, as well as universal serial bus (USB)-to-serial converters, USB over IP products, and multiport USB hubs. In addition, it offers turn-key networking product design, testing, and certification services for wireless technology platforms and applications; implementation planning, application development, on-site support, installation, and customer training services; and Digi Remote Manager, a centralized remote device management solution to meet service level commitments and stay compliant with payment card industry standards, as well as to monitor, diagnose, and fix remote devices. Further, it provides Digi Smart Solution, a system that enables restaurants, groceries, convenience stores, pharmacies, schools, hospitals, and industrial sites to monitor the temperature of food and other perishable goods, as well as to track the completion of operating tasks by employees. It sells its products through a network of distributors, systems integrators, and value added resellers for various businesses and institutions, as well as to original equipment manufacturers and others in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company was founded in 1985 and is headquartered in Minnetonka, Minnesota.

About A10 Networks

A10 Networks, Inc. provides software and hardware solutions in the United States, Japan, and internationally. The company's products are built on advanced core operating system platform. It offers application delivery controllers that provide advanced server load balancing; lightning application delivery service, a cloud-native software-as-a-service platform designed to boost the delivery and security of applications and micro services; and carrier grade networking address translation product that offer network address and protocol translation services for service provider networks. The company also provides threat protection systems for the protection of networks and server resources against massive distributed denial of service attacks; secure sockets layer insight that decrypts secure sockets layer-encrypted traffic and forwards it to a third-party security device, such as a firewall, for deep packet inspection; and convergent firewall, which consolidates multiple critical security capabilities in one package by consolidating multiple security and networking functions in a single appliance. Its solutions enable cloud providers, Web-scale companies, service providers, government organizations, and enterprises to secure and optimize the performance of their data center and cloud applications; and secure their users, applications, and infrastructure from Internet, Web, and network threats. The company delivers its solutions on optimized hardware appliances, bare metal software, virtual appliances, and cloud-native software. It serves telecommunications, technology, industrial, retail, financial, gaming, and education industries. The company markets its products through sales organizations, as well as distribution channel partners, including distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.

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