Digi International Inc (DGII)vsSonos Inc (SONO)
DGII
Digi International Inc
$65.95
-4.77%
TECHNOLOGY · Cap: $2.59B
SONO
Sonos Inc
$14.32
-7.20%
TECHNOLOGY · Cap: $1.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Sonos Inc generates 207% more annual revenue ($1.46B vs $475.06M). DGII leads profitability with a 9.1% profit margin vs 1.6%. DGII trades at a lower P/E of 60.8x. DGII earns a higher WallStSmart Score of 54/100 (C-).
DGII
Buy54
out of 100
Grade: C-
SONO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.4%
Fair Value
$26.61
Current Price
$65.95
$39.34 premium
Margin of Safety
-34.7%
Fair Value
$12.25
Current Price
$14.32
$2.07 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Growing faster than its price suggests
Revenue surging 25.1% year-over-year
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
3.6% earnings growth
ROE of 6.5% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
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 : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 90.3x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
DGII profiles as a growth stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
DGII is growing revenue faster at 25.1% — sustainability is the question.
DGII generates stronger free cash flow (41M), providing more financial flexibility.
Bottom Line
DGII scores higher overall (54/100 vs 45/100) and 25.1% revenue growth. Both earn "Buy" and "Hold" 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.
Visit Website →Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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