Head-To-Head Comparison: Digi International (DGII) and eRoomSystem Technologies (ERMS)

Digi International (NASDAQ:DGII) and eRoomSystem Technologies (OTCMKTS:ERMS) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Profitability

This table compares Digi International and eRoomSystem Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digi International 0.57% 1.32% 1.18%
eRoomSystem Technologies N/A N/A N/A

Insider and Institutional Ownership

79.7% of Digi International shares are owned by institutional investors. 6.8% of Digi International shares are owned by company insiders. Comparatively, 15.8% of eRoomSystem Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Digi International has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, eRoomSystem Technologies has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Digi International and eRoomSystem Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digi International 0 0 6 0 3.00
eRoomSystem Technologies 0 0 0 0 N/A

Digi International presently has a consensus target price of $16.90, suggesting a potential upside of 44.08%. Given Digi International’s higher probable upside, equities research analysts clearly believe Digi International is more favorable than eRoomSystem Technologies.

Valuation and Earnings

This table compares Digi International and eRoomSystem Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digi International $228.37 million 1.40 $1.30 million $0.05 234.60
eRoomSystem Technologies $900,000.00 0.49 $50,000.00 N/A N/A

Digi International has higher revenue and earnings than eRoomSystem Technologies.

Summary

Digi International beats eRoomSystem Technologies on 10 of the 11 factors compared between the two stocks.

Digi International Company Profile

Digi International Inc. provides Internet of Things networking hardware products and solutions. It operates in two segments, Machine-to-Machine and Solutions. It offers cellular routers that provide connectivity for devices over a cellular data network; cellular gateway products that enable devices or groups of devices to be networked in locations where there is no existing network or where access to a network is prohibited; radio frequency products that utilize a range of wireless protocols for PC-to-device or device-to-device connectivity; and Connect, Rabbit, and ARM-based embedded systems on module and single board computers for medical, transportation, and industrial device manufacturers. It also provides console and serial servers, as well as universal serial bus (USB)-to-serial converters, USB over IP products, and multiport USB hubs. In addition, it offers turn-key networking product design, testing, and certification services for wireless technology platforms and applications; implementation planning, application development, on-site support, installation, and customer training services; and Digi Remote Manager, a centralized remote device management solution to meet service level commitments and stay compliant with payment card industry standards, as well as to monitor, diagnose, and fix remote devices. Further, it provides Digi Smart Solution, a system that enables restaurants, groceries, convenience stores, pharmacies, schools, hospitals, and industrial sites to monitor the temperature of food and other perishable goods, as well as to track the completion of operating tasks by employees. It sells its products through a network of distributors, systems integrators, and value added resellers for various businesses and institutions, as well as to original equipment manufacturers and others in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company was founded in 1985 and is headquartered in Minnetonka, Minnesota.

eRoomSystem Technologies Company Profile

eRoomSystem Technologies, Inc. and its subsidiaries provide amenity services to the lodging industry in the United States and internationally. It offers Amenities Manager, an amenity management platform and proprietary software that provides a cloud-based system to assist a hotel in enhancing its image and theme through products and managing its amenities; and refreshment centers. The company also provides customer service and maintenance for refreshment centers owned by hotels and instructs hotel personnel on the use and maintenance of its products; and manages the process of providing product and restockers to the hotels, as well as other solution to various hotels. In addition, it offers asset based loans and other investments. The company was formerly known as RoomSystems Technologies, Inc. and changed its name to eRoomSystem Technologies, Inc. in March 2000. eRoomSystem Technologies, Inc. was founded in 1993 and is headquartered in Lakewood, New Jersey. The company was formerly known as RoomSystems Technologies, Inc. and changed its name to eRoomSystem Technologies, Inc. in March 2000. eRoomSystem Technologies, Inc. was incorporated in 1993 and is headquartered in Lakewood, New Jersey.

Receive News & Ratings for Digi International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Digi International and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply