COMPARE · Reviewed August 3, 2026
CIEN vs DGII
Verdict: Side-by-side breakdown using the Bull Rankings model. CIEN scored 59.6, DGII scored 59.8 — DGII leads.
Compare another set
CIEN
Ciena Corporation
59.6
$390.76 · $55.3B
fundamentals as of
Score gap
0.2
DGII leads
DGII
Digi International Inc.
59.8
$70.40 · $2.7B
fundamentals as of
The model, pillar by pillar (0–100 each)
CIEN
stronger →← stronger
DGII
62
Qualityreturns · margins · balance sheet
57
84
Growthrevenue & earnings expansion
77
41
Valuevaluation vs sector peers
49
CIEN is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
CIEN
DGII
$833mC+
FCF
$126mC
+30.6%A
Rev
+13.5%B+
0.55C+
D/E
0.23B
129.4xD
P/E
62.3xC
0.65A-
PEG
0.98B+
Winner per row is the stronger grade in our model; a tie or a missing value shows no highlight.
Valuation · DCF cross-check
CIEN
DGII
255% above
Price vs fair valuelower is cheaper
11% above
~50%/yr
Growth the price implies10-yr FCF · lower = less priced in
~11%/yr
-78%
1-yr DCF upside
-21%
-72%
5-yr DCF upside
-10%
-59%
10-yr DCF upside
+8%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
The companies
CIENCiena Corporation
Why now
Communication Equipment · market cap $55.3b. Down 39% from 52-week high of $637.51 — deep drawdown territory. Revenue growing +31% — in hypergrowth territory. PEG 0.65 — paying under fair value for the growth rate. 19 sell-side analysts rate this a Buy with a mean 1-yr target of $565.71 (implying +45% upside).
Moat
ROE 15% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 190% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. $55.3b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Trailing P/E 129.4x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Down 39% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
DGIIDigi International Inc.
Why now
Communication Equipment · market cap $2.7b. 8% off the 52-week high of $76.41. Revenue growing +13%, comfortably above the S&P median. PEG 0.98 — paying under fair value for the growth rate. 5 sell-side analysts publish a mean 1-yr target of $72.20 (implying +3% upside).
Moat
Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Trailing P/E 62.3x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. ROE 6% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.