CSPI vs DGII

For growth investors, CSP Inc.

(CSPI) is the stronger pick with 6. 4% revenue growth year-over-year, versus 1. 5% for Digi International Inc. (DGII). Digi International Inc. (DGII) offers the better valuation at 57. 4x trailing P/E (26. 9x forward), making it the more compelling value choice. Analysts rate Digi International Inc. (DGII) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Digi International Inc.

(DGII) delivered a total return of +247. 1%, compared to +123. 8% for CSP Inc. (CSPI). Over 10 years, the gap is even starker: DGII returned +497. 5% versus CSPI's +246. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), CSP Inc.

(CSPI) is the lower-risk stock at 1. 14β versus Digi International Inc. 's 1. 35β — meaning DGII is approximately 19% more volatile than CSPI relative to the S&P 500. On balance sheet safety, CSP Inc. (CSPI) carries a lower debt/equity ratio of 6% versus 28% for Digi International Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), CSP Inc.

(CSPI) is pulling ahead at 6. 4% versus 1. 5% for Digi International Inc. (DGII). On earnings-per-share growth, the picture is similar: Digi International Inc. grew EPS 77. 0% year-over-year, compared to 72. 9% for CSP Inc.. Over a 3-year CAGR, DGII leads at 3. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Digi International Inc.

(DGII) is the more profitable company, earning 9. 5% net margin versus -0. 2% for CSP Inc. — meaning it keeps 9. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DGII leads at 13. 1% versus -5. 3% for CSPI. At the gross margin level — before operating expenses — DGII leads at 62. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

In this comparison, CSPI (1.

4% yield) pays a dividend. DGII does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, CSP Inc.

(CSPI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 14), 1. 4% yield, +246. 2% 10Y return). Both have compounded well over 10 years (CSPI: +246. 2%, DGII: +497. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

CSPI pays a dividend while DGII does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.