In a race to digitization, companies need products and services that communicate with each other over a network in order to seamlessly streamline operations. This is called the Internet of Things (IoT) and it carries a market value of over USD 700 billion and is expected to grow by more than 10% over the next 4 years (GLOBE NEWSWIRE). Digi International Inc. (Nasdaq: DGII) is a leading provider of IoT products and solutions supporting industries from retail and banking to medical, transportation, and remote industrial applications. They strive to develop the most innovative products to maximize scalability and ROI, which is how they have more than 35K+ customers worldwide.
Comps: Silicon Laboratories Inc. (Nasdaq: SLAB), ADTRAN Holdings, Inc. (Nasdaq: ADTN)
It is important to note, all of these companies are mega-cap enterprises, but Silicon Laboratories is worth about three times more than ADTRAN Holdings and Digi International. With that being said, Digi International exhibited a more robust price to earnings and return on equity than the other two, in addition to showing higher profit margins and earnings per share than ADTRAN Holdings.