MSI vs AXON vs DGII

For growth investors, Axon Enterprise, Inc.

(AXON) is the stronger pick with 33. 5% revenue growth year-over-year, versus 1. 5% for Digi International Inc. (DGII). Motorola Solutions, Inc. (MSI) offers the better valuation at 34. 0x trailing P/E (25. 8x forward), making it the more compelling value choice. Analysts rate Motorola Solutions, Inc. (MSI) a "Buy" — based on 33 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.

On trailing P/E, Motorola Solutions, Inc.

(MSI) is the cheapest at 34. 0x versus Axon Enterprise, Inc. at 282. 7x. On forward P/E, Motorola Solutions, Inc. is actually cheaper at 25. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Digi International Inc. wins at 0. 87x versus Motorola Solutions, Inc. 's 1. 39x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Digi International Inc.

(DGII) delivered a total return of +247. 1%, compared to +127. 3% for Motorola Solutions, Inc. (MSI). Over 10 years, the gap is even starker: AXON returned +22. 0% versus DGII's +463. 4%. 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), Motorola Solutions, Inc.

(MSI) is the lower-risk stock at 0. 21β versus Digi International Inc. 's 1. 40β — meaning DGII is approximately 580% more volatile than MSI relative to the S&P 500. On balance sheet safety, Digi International Inc. (DGII) carries a lower debt/equity ratio of 28% versus 4% for Motorola Solutions, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Axon Enterprise, Inc.

(AXON) is pulling ahead at 33. 5% 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 -68. 5% for Axon Enterprise, Inc.. Over a 3-year CAGR, AXON leads at 32. 7% 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.

Motorola Solutions, Inc.

(MSI) is the more profitable company, earning 18. 4% net margin versus 4. 5% for Axon Enterprise, Inc. — meaning it keeps 18. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MSI leads at 25. 1% versus -2. 2% for AXON. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Digi International Inc. (DGII) is the more undervalued stock at a PEG of 0. 87x versus Motorola Solutions, Inc. 's 1. 39x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Motorola Solutions, Inc. (MSI) trades at 25. 8x forward P/E versus 55. 0x for Axon Enterprise, Inc. — 29. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AXON: 70. 2% to $726. 71.

In this comparison, MSI (1.

0% yield) pays a dividend. AXON, DGII do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Motorola Solutions, Inc.

(MSI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 21), 1. 0% yield, +554. 6% 10Y return). Both have compounded well over 10 years (MSI: +554. 6%, AXON: +22. 0%), 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.

These companies operate in different sectors (MSI (Technology) and AXON (Industrials) and DGII (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: MSI is a mid-cap quality compounder stock; AXON is a mid-cap high-growth stock; DGII is a small-cap quality compounder stock. MSI pays a dividend while AXON, DGII do 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.