Financial Review: Digi International (NASDAQ:DGII) vs. Toshiba (NASDAQ:TOSYY)

Toshiba (OTCMKTS:TOSYY) and Digi International (NASDAQ:DGII) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Toshiba $33.28 billion 0.62 $9.13 billion N/A N/A
Digi International $228.37 million 1.57 $1.30 million $0.05 256.00

Toshiba has higher revenue and earnings than Digi International.

Volatility and Risk

Toshiba has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Digi International has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.

Dividends

Toshiba pays an annual dividend of $0.09 per share and has a dividend yield of 0.6%. Digi International does not pay a dividend.

Profitability

This table compares Toshiba and Digi International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Toshiba 27.70% 0.76% 0.32%
Digi International 4.78% 2.57% 2.28%

Insider & Institutional Ownership

0.1% of Toshiba shares are held by institutional investors. Comparatively, 82.0% of Digi International shares are held by institutional investors. 6.8% of Digi International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Toshiba and Digi International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toshiba 0 0 0 0 N/A
Digi International 0 0 5 0 3.00

Digi International has a consensus price target of $17.30, indicating a potential upside of 35.16%. Given Digi International’s higher probable upside, analysts clearly believe Digi International is more favorable than Toshiba.

Summary

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

About Toshiba

Toshiba Corporation, together with its subsidiaries, manufactures and markets electronic and electrical products and systems worldwide. It operates through six segments: Energy Systems & Solutions, Infrastructure Systems & Solutions, Retail & Printing Solutions, Storage & Electronic Devices Solutions, Industrial ICT Solutions, and Others. The company offers infrastructure systems, including power, transmission and distribution, industrial, railway transportation, security and automation, broadcasting and network, water and environmental, building, and POS systems; airport facilities and solid-state weather radars; elevators and escalators; and printing and IT solutions. It also provides electronic devices and components, such as semiconductors, storage products, microwave semiconductors and components, materials and devices, and display devices and components; and digital products comprising computers and tablets, memory products, SSDs, televisions, Blu-ray products, and home appliances. In addition, the company offers nuclear power generation systems, thermal power generation systems, light fixtures, air-conditioners, building and facility solutions, multi-function peripherals, hard disk drives, cloud solutions, visual products, etc. Toshiba Corporation was founded in 1875 and is headquartered in Tokyo, Japan.

About Digi International

Digi International Inc. provides Internet of Things connectivity products, services, and solutions in North America, Europe, the Middle East, Africa, Asia, and Latin America. The company operates in two segments, IoT Products & Services and IoT 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. The company also provides console and serial servers, as well as universal serial bus (USB)-to-serial converters, USB over Internet protocol products, and multiport USB hubs. In addition, it offers cellular remote management products that provide cellular router technology and device management solutions; Digi Remote Manager, a centralized remote device management solution to meet service level commitments and stay compliant with payment card industry data security standards, as well as to monitor, diagnose, and fix remote devices; turn-key wireless networking product development, testing, and certification for wireless technology platforms and applications; and implementation planning, application development, on-site support, installation, and customer training services. Further, the company provides SmartSense by Digi, a system that enables customers in food service, transportation/logistics, and healthcare to monitor the temperature of food and other perishable goods; and to track the completion of operating tasks by employees, as well as to have visibility in the supply chain to product temperature. The company was founded in 1985 and is headquartered in Minnetonka, Minnesota.

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