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Digi International Inc versus KVH Industries Inc Head to Head Compare


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This is a head to head compare of Digi International Inc (NASDAQ:DGII) and KVH Industries Inc (NASDAQ:KVHI) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.



Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.


Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
DGII -9.3% +12.9% +33.0%
KVHI -22.6% -2.7% -11.5%

These companies have the same star rating so the head-to-head compare will rely on a deep dive into specific metric comparisons. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Digi International Inc has larger revenue in the last year than KVH Industries Inc. Raw revenue comps do not affect the head to head rating.
Revenue

Both DGII and KVHI show positive earnings over the last year with the edge to DGII.

Net Income


DGII generates larger revenue per employee ($394,000) than KVHI ($326,000), but not enough to affect the comparison rating.

Revenue per Employee
($ Millions)


➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

KVH Industries Inc generates $1.07 in revenue for every $1 of expense, very similar to Digi International Inc's $1.06.

Revenue per Dollar of Expense


DGII generates $0.09 in levered free cash flow for every $1 of revenue, substantially higher than KVHI's $0.06.

Free Cash Flow
per Dollar of Revenue


➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

While KVH Industries Inc is growing revenue, Digi International Inc revenue is actually shrinking.

Revenue Growth


For every $1 in revenue, the stock market prices in $1.73 in market cap for DGII and $0.89 in market cap for KVHI.

Price to Sales

Digi International Inc (NASDAQ:DGII)
defeats
KVH Industries Inc (NASDAQ:KVHI) : 54 to 46