Envivio (NASDAQ: ENVI) and Digi International (NASDAQ:DGII) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Envivio and Digi International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envivio 0 0 0 0 N/A
Digi International 0 0 4 0 3.00

Digi International has a consensus price target of $14.50, suggesting a potential upside of 50.26%.

Profitability

This table compares Envivio and Digi International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Envivio -5.31% -7.98% -4.76%
Digi International 5.16% 3.24% 2.95%

Earnings and Valuation

This table compares Envivio and Digi International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Envivio N/A N/A N/A ($0.30) N/A
Digi International $181.63 million 1.42 $9.36 million $0.35 27.57

Digi International has higher revenue and earnings than Envivio. Envivio is trading at a lower price-to-earnings ratio than Digi International, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

77.4% of Digi International shares are owned by institutional investors. 6.8% of Digi International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Digi International beats Envivio on 8 of the 8 factors compared between the two stocks.

About Envivio

Envivio, Inc. is a provider of software-based Internet protocol (IP) video processing and distribution solutions that enable the delivery of video to consumers. The Company’s solutions enable service providers and content providers to offer video across a range of video formats, networks, consumer devices and operating systems. The Company enables service providers and content providers to deliver linear broadcast and on-demand video services to their customers via various screens, such as televisions, tablets, smartphones, laptops, personal computers (PCs) and gaming devices. The Company’s product line includes Muse, Halo, Envivio appliances and Guru. Its software-based solution delivers a converged multi-screen service for traditional Pay-television, and across mobile, broadband and managed networks. The Company’s solution enables the transport of video through different networks, such as broadband and mobile networks, or traditional cable and satellite broadcast networks.

About Digi International

Digi International Inc. is a provider of mission and business-critical machine-to-machine (M2M) and Internet-of-Things (IoT) connectivity products and services. The Company creates connected products and deploys and manages critical communications infrastructures in a range of environments. It offers four categories of hardware products: cellular routers and gateways, radio frequency (RF), embedded and network products. The Company’s cellular product category includes its cellular routers and all gateways. The Company’s RF product category includes its XBee modules, as well as other RF Solutions. Its embedded product category includes Digi Connect and Rabbit embedded systems on module and single board computers. Its network product category includes console and serial servers and universal serial bus (USB) connected products. The Company’s service offerings include wireless design services, Digi Device Cloud (which includes Digi Remote Manager) and enterprise support services.

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