Analyzing Redline Communications Group (OTCMKTS:RDLCF) & Digi International (NASDAQ:DGII)

Digi International (NASDAQ:DGII) and Redline Communications Group (OTCMKTS:RDLCF) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Institutional & Insider Ownership

95.9% of Digi International shares are owned by institutional investors. 3.4% of Digi International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Digi International and Redline Communications Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digi International	$430.22 million	7.30	$40.80 million	$1.26	65.67
Redline Communications Group	N/A	N/A	N/A	N/A	N/A

Digi International has higher revenue and earnings than Redline Communications Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Digi International	9.63%	12.16%	8.48%
Redline Communications Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and target prices for Digi International and Redline Communications Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digi International	0	3	4	0	2.57
Redline Communications Group	0	0	0	0	0.00

Digi International currently has a consensus price target of $82.40, indicating a potential downside of 0.42%. Given Digi International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Digi International is more favorable than Redline Communications Group.

Summary

Digi International beats Redline Communications Group on 9 of the 9 factors compared between the two stocks.

About Digi International

Digi International Inc. provides business and mission-critical Internet of Things (IoT) products, services, and solutions in the United States, Europe, the Middle East, Africa, and internationally. The company operates in two segments, IoT Products & Services, and IoT Solutions. It offers cellular routers for mission-critical wireless connectivity; cellular modules to embed cellular communications abilities into the products to deploy and manage intelligent and secure cellular connected products; console servers to provide secure and remote access to network equipment in data centers and at edge locations; and radio frequency products, including embedded wireless modules, off-the-shelf gateways, modems, and adapters under the Digi XBee brand. The company provides embedded system products under the Digi Connect, ConnectCore, and Rabbit brands; and infrastructure management products, comprising of serial servers, which offers serial port-to-Ethernet integration of devices into wired Ethernet networks; and universal serial bus solutions. In addition, it offers Digi Remote Manager and Lighthouse, a recurring revenue cloud-based service that provides a secure environment for customers to manage their connected device deployment and network devices; SmartSense by Digi for monitoring wirelessly the temperature of food and other perishable or sensitive goods, monitor facilities or pharmacies by tracking the completion of operating tasks by employees, as well as quality control and incident management for food service, healthcare, and transportation/logistics industries; and Ventus which provides MNaaS solutions. Further, the company provides professional services, such as site planning, implementation management, application development, and customer training; data plan subscriptions; and enhanced technical support services, as well as Digi Wireless Design Services. Digi International Inc. was incorporated in 1985 and is headquartered in Hopkins, Minnesota.

About Redline Communications Group

Redline Communications Group Inc., together with its subsidiaries, develops broadband fixed wireless base stations, subscriber stations, and network management systems for point-to-point and point-to-multipoint applications for commercial end-users. It operates through Hardware and Software, Professional Services and 3rd Party Equipment, and Maintenance and Support segments. The company offers Ellipse, a series of base stations; Edge and Elte wireless terminals; Enterprise, a wireless customer premise equipment; RAS-Elite, a portable auto-acquire outdoor wireless solution; RAS-Extend, a mechanical auto tracking system; RDL-3000 connect series of remote terminals; PoE, an industrial grade power injector; and FlexCore, an EPC software. It also provides FlexTALK, a push-to-talk solution; and ClearView NMS, a network management software, as well as antennas, cables, mounting kits, POE power injectors, and surge protectors. In addition, the company offers RF planning and site survey, 4G and 5G mobile network design and optimization, deployment and resident engineering, wireless network performance audit, and program and project management services. It serves oil and gas, mining, utilities, transportation, government, military, and telecom service provider markets through regional distributors, channel partners, and systems integrators. The company has operations in the Americas, the Middle East, Europe, Africa, and the Asia Pacific. Redline Communications Group Inc. was founded in 1999 and is headquartered in Markham, Canada.