Sifting through countless of stocks in the Communications Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Digi International Inc., NetScout Systems or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Digi International Inc., NetScout Systems and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Digi International Inc., NetScout Systems and Inc.

Digi International Inc. provides business and mission-critical Internet of Things (IoT) connectivity products, services, and solutions in the United States, Europe, the Middle East, Africa, and internationally. It operates through IoT Products & Services, and IoT Solutions segments. The company 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. It also provides embedded system products under the Digi Connect, and ConnectCore brands; and infrastructure management products comprising serial servers, which offers serial port-to-Ethernet integration of devices into wired Ethernet networks; and universal serial bus solutions. In addition, it provides Digi Remote Manager and Lighthouse, a recurring revenue cloud-based service that offers a secure environment for customers to manage connected device deployment and network devices; SmartSense by Digi for monitoring wirelessly the temperature of food and other perishable or sensitive goods, monitoring facilities or pharmacies by tracking the completion of operating tasks by employees, and quality control and incident management in food service, healthcare, and transportation/logistics industries; and Ventus for 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.

NetScout Systems, Inc. provides carrier service assurance, cybersecurity, and Distributed Denial-of-Service (DDoS) solutions to protect digital business services against disruptions. It offers nGeniusONE management software to predict, preempt, and resolve network and service delivery problems, as well as facilitate the optimization and capacity planning of their network infrastructures; and specialized platforms and analytic modules to analyze and troubleshoot traffic in radio access and Wi-Fi networks; and Omnis Insights, a solution that is designed to generate a high-fidelity and curated dataset that strengthens observability and cybersecurity operations. Its platform provides real-time generation and analysis of information-rich, high-volume network-derived data for use its applications and partner networks. In addition, it offers ISNG, a real-time information platform that provides insights to optimize network performance; packet flow systems that delivers targeted network traffic access to a range of monitoring and cybersecurity tools and systems, including the nGeniusONE application; vSTREAM, a virtualized form factor version; Infinistream, an advanced passive network probe; and markets test access points that enables full and non-disruptive access to network traffic. Further, the company provides cybersecurity solutions to protect networks against DDoS attacks under the Arbor solutions, including Arbor Sightline, Arbor Threat Mitigation System, Arbor Insight, Arbor Edge Defense, and Omnis Cyber Intelligence solutions. It serves enterprise customers in financial services, technology, manufacturing, healthcare, utilities, education, transportation, and retail; mobile, wireline, and cable operators, internet service providers, and cloud providers industries; and government and associated agencies through a direct sales force, and indirect reseller and distribution channels. The company was incorporated in 1984 and is headquartered in Westford, Massachusetts.

Latest Communications Equipment and Digi International Inc., NetScout Systems, Inc. Stock News

As of July 31, 2026, Digi International Inc. had a $2.6 billion market capitalization, compared to the Communications Equipment median of $376.1 million. Digi International Inc.’s stock is up 61.1% in 2026, up 4.1% in the previous five trading days and up 109.81% in the past year.

Currently, Digi International Inc.’s price-earnings ratio is 61.6. Digi International Inc.’s trailing 12-month revenue is $475.1 million with a 9.1% net profit margin. Year-over-year quarterly sales growth most recently was 25.1%. Analysts expect adjusted earnings to reach $2.476 per share for the current fiscal year. Digi International Inc. does not currently pay a dividend.

As of July 31, 2026, NetScout Systems, Inc. had a $3.0 billion market cap, putting it in the 59th percentile of all stocks. NetScout Systems, Inc.’s stock is up 50.3% in 2026, up 1.7% in the previous five trading days and up 89.34% in the past year.

Currently, NetScout Systems, Inc.’s price-earnings ratio is 31.3. NetScout Systems, Inc.’s trailing 12-month revenue is $859.5 million with a 11.1% net profit margin. Year-over-year quarterly sales growth most recently was -1.0%. Analysts expect adjusted earnings to reach $2.740 per share for the current fiscal year. NetScout Systems, Inc. does not currently pay a dividend.

How We Compare Digi International Inc., NetScout Systems and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Digi International Inc., NetScout Systems and Inc.’s stock grades to see how they measure up against one another.

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Digi International Inc., NetScout Systems and Inc. Stock Value Grades

Company	Ticker	Value
Digi International Inc.	DGII	F
NetScout Systems, Inc.	NTCT	C

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Digi International Inc. has a Value Score of 14, which is Ultra Expensive. NetScout Systems, Inc. has a Value Score of 49, which is Average.

The Value Stock Winner: No Clear Winner

Neither Digi International Inc., NetScout Systems or Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Digi International Inc., NetScout Systems or Inc. is the better investment when it comes to value.

Digi International Inc., NetScout Systems and Inc. Growth Grades

Company	Ticker	Growth
Digi International Inc.	DGII	A
NetScout Systems, Inc.	NTCT	D

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Digi International Inc. has a Growth Score of 95, which is Very Strong. NetScout Systems, Inc. has a Growth Score of 36, which is Weak.

The Growth Grade Winner: Digi International Inc.

As you can clearly see from the Growth Grade breakdown above, Digi International Inc. has a more attractive growth grade than NetScout Systems, Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Digi International Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Digi International Inc., NetScout Systems and Inc.’s Quality Grades

Company	Ticker	Quality
Digi International Inc.	DGII	B
NetScout Systems, Inc.	NTCT	A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Digi International Inc. has a Quality Score of 76, which is Strong. NetScout Systems, Inc. has a Quality Score of 86, which is Very Strong.

The Quality Grade Winner: NetScout Systems, Inc.

As you can clearly see from the Quality Grade breakdown above, NetScout Systems, Inc. has a better overall quality grade than Digi International Inc.. For investors who are looking for companies with higher quality than others in the same industry, NetScout Systems, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Digi International Inc., NetScout Systems and Inc. Grades

In addition to Value, Quality and Growth, A+ Investor also provides grades for Momentum and Estimate Revisions.

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Digi International Inc., NetScout Systems and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Digi International Inc., NetScout Systems or Inc. Stock?

Overall, Digi International Inc. stock has a Value Score of 14, Growth Score of 95 and Quality Score of 76.

NetScout Systems, Inc. stock has a Value Score of 49, Growth Score of 36 and Quality Score of 86.

Comparing Digi International Inc., NetScout Systems and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.