WallStSmart

Digi International Inc (DGII)vsHewlett Packard Enterprise Co (HPE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hewlett Packard Enterprise Co generates 8066% more annual revenue ($38.79B vs $475.06M). DGII leads profitability with a 9.1% profit margin vs 4.0%. DGII appears more attractively valued with a PEG of 0.83. HPE earns a higher WallStSmart Score of 59/100 (C).

DGII

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 4.0Quality: 6.5
Piotroski: 3/9Altman Z: 2.44

HPE

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 4.5Value: 5.7Quality: 4.0
Piotroski: 3/9Altman Z: 0.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGIISignificantly Overvalued (-74.4%)

Margin of Safety

-74.4%

Fair Value

$26.61

Current Price

$65.95

$39.34 premium

UndervaluedFair: $26.61Overvalued

Intrinsic value data unavailable for HPE.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DGII3 strengths · Avg: 8.3/10
Debt/EquityHealth
0.239/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Revenue GrowthGrowth
25.1%8/10

Revenue surging 25.1% year-over-year

HPE4 strengths · Avg: 8.8/10
Revenue GrowthGrowth
40.0%10/10

Revenue surging 40.0% year-over-year

Market CapQuality
$63.79B9/10

Large-cap with strong market position

PEG RatioValuation
0.858/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Areas to Watch

DGII4 concerns · Avg: 3.0/10
EPS GrowthGrowth
3.6%4/10

3.6% earnings growth

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
60.8x2/10

Premium valuation, high expectations priced in

HPE4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : DGII

The strongest argument for DGII centers on Debt/Equity, PEG Ratio, Revenue Growth. Revenue growth of 25.1% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.

Bull Case : HPE

The strongest argument for HPE centers on Revenue Growth, Market Cap, PEG Ratio. Revenue growth of 40.0% demonstrates continued momentum. PEG of 0.85 suggests the stock is reasonably priced for its growth.

Bear Case : DGII

The primary concerns for DGII are EPS Growth, Return on Equity, Piotroski F-Score. A P/E of 60.8x leaves little room for execution misses.

Bear Case : HPE

The primary concerns for HPE are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 45.0x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

DGII profiles as a growth stock while HPE is a hypergrowth play — different risk/reward profiles.

HPE carries more volatility with a beta of 1.45 — expect wider price swings.

HPE is growing revenue faster at 40.0% — sustainability is the question.

HPE generates stronger free cash flow (827M), providing more financial flexibility.

Bottom Line

HPE scores higher overall (59/100 vs 54/100) and 40.0% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Digi International Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Digi International Inc. provides mission-critical and enterprise Internet of Things (IoT) products, services and solutions in the United States and internationally. The company is headquartered in Hopkins, Minnesota.

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Hewlett Packard Enterprise Co

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

The Hewlett Packard Enterprise Company (HPE) is an American multinational enterprise information technology company based in Houston, Texas, United States.

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