DGII vs. CSCO: Which Stock Is the Better Value Option?

Core Viewpoint - Digi International (DGII) is currently viewed as a superior value opportunity compared to Cisco Systems (CSCO) based on various valuation metrics [7]. Valuation Metrics - Both DGII and CSCO hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - DGII has a forward P/E ratio of 14.75, while CSCO has a forward P/E of 17.25, suggesting DGII is more attractively priced [5]. - The PEG ratio for DGII is 0.87, indicating better value relative to its expected earnings growth compared to CSCO's PEG ratio of 3.38 [5]. - DGII's P/B ratio is 1.83, significantly lower than CSCO's P/B of 5.59, further supporting DGII's valuation as more favorable [6]. - These metrics contribute to DGII's Value grade of B, while CSCO has a Value grade of D, highlighting the disparity in perceived value between the two stocks [6].