COMPARE · Reviewed August 7, 2026
DGII vs HPE
Verdict: Side-by-side breakdown using the Bull Rankings model. DGII scored 60.0, HPE scored 57.0 — DGII leads.
Compare another set
DGII
Digi International Inc.
60
$81.70 · $3.1B
fundamentals as of
Score gap
3.0
DGII leads
HPE
Hewlett Packard Enterprise Company
57
$53.22 · $70.5B
fundamentals as of
The model, pillar by pillar (0–100 each)
DGII
stronger →← stronger
HPE
59
Qualityreturns · margins · balance sheet
45
88
Growthrevenue & earnings expansion
83
42
Valuevaluation vs sector peers
50
DGII is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
DGII
HPE
$136mC
FCF
$4.0bB
+20.3%A-
Rev
+22.6%A-
0.23B
D/E
0.84C+
64.8xC
P/E
49.7xC+
0.98B+
PEG
0.85B+
Winner per row is the stronger grade in our model; a tie or a missing value shows no highlight.
Valuation · DCF cross-check
DGII
HPE
21% above
Price vs fair valuelower is cheaper
19% above
~13%/yr
Growth the price implies10-yr FCF · lower = less priced in
~15%/yr
-27%
1-yr DCF upside
-29%
-17%
5-yr DCF upside
-16%
0%
10-yr DCF upside
+8%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
DGII
No notable signals flagged.
HPE
Why this score
- Raising its dividend
The companies
DGIIDigi International Inc.
Why now
Communication Equipment · market cap $3.1b. 6% off the 52-week high of $86.84. Revenue growing +20%, comfortably above the S&P median. PEG 0.98 — paying under fair value for the growth rate. 5 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $72.20 (implying -12% 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 64.8x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. ROE 7% 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.
HPEHewlett Packard Enterprise Company
Why now
Communication Equipment · market cap $70.5b. 17% off the 52-week high of $64.25. Revenue growing +23%, comfortably above the S&P median. PEG 0.85 — paying under fair value for the growth rate. 19 sell-side analysts rate this a Buy with a mean 1-yr target of $65.56 (implying +23% 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. $70.5b 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
Beta 1.44 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 50x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. Net margin 4.0% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
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.