WallStSmart

Digi International Inc (DGII)vsMotorola Solutions Inc (MSI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Motorola Solutions Inc generates 2503% more annual revenue ($11.68B vs $448.82M). MSI leads profitability with a 18.4% profit margin vs 9.4%. DGII appears more attractively valued with a PEG of 0.83. MSI earns a higher WallStSmart Score of 62/100 (C+).

DGII

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 5.5Value: 7.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.44

MSI

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 9.0Value: 7.3Quality: 3.5
Piotroski: 3/9Altman Z: 1.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGIISignificantly Overvalued (-35.9%)

Margin of Safety

-35.9%

Fair Value

$34.14

Current Price

$50.66

$16.52 premium

UndervaluedFair: $34.14Overvalued
MSISignificantly Overvalued (-60.8%)

Margin of Safety

-60.8%

Fair Value

$261.93

Current Price

$451.01

$189.08 premium

UndervaluedFair: $261.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DGII4 strengths · Avg: 8.3/10
Debt/EquityHealth
0.249/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
17.9%8/10

17.9% revenue growth

MSI4 strengths · Avg: 8.8/10
Return on EquityProfitability
104.2%10/10

Every $100 of equity generates 104 in profit

Market CapQuality
$75.74B9/10

Large-cap with strong market position

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

Free Cash FlowQuality
$1.14B8/10

Generating 1.1B in free cash flow

Areas to Watch

DGII4 concerns · Avg: 2.8/10
Market CapQuality
$1.87B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
44.3x2/10

Premium valuation, high expectations priced in

MSI4 concerns · Avg: 3.3/10
PEG RatioValuation
2.474/10

Expensive relative to growth rate

P/E RatioValuation
35.7x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
31.0x2/10

Trading at 31.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : DGII

The strongest argument for DGII centers on Debt/Equity, PEG Ratio, Price/Book. Revenue growth of 17.9% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.

Bull Case : MSI

The strongest argument for MSI centers on Return on Equity, Market Cap, Operating Margin. Profitability is solid with margins at 18.4% and operating margin at 27.8%. Revenue growth of 12.3% demonstrates continued momentum.

Bear Case : DGII

The primary concerns for DGII are Market Cap, Return on Equity, Piotroski F-Score. A P/E of 44.3x leaves little room for execution misses.

Bear Case : MSI

The primary concerns for MSI are PEG Ratio, P/E Ratio, Piotroski F-Score. Debt-to-equity of 4.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

DGII profiles as a growth stock while MSI is a mature play — different risk/reward profiles.

MSI carries more volatility with a beta of 0.96 — expect wider price swings.

DGII is growing revenue faster at 17.9% — sustainability is the question.

MSI generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

MSI scores higher overall (62/100 vs 57/100), backed by strong 18.4% margins and 12.3% 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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Motorola Solutions Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Motorola Solutions, Inc., is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.

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