MSI vs DGII vs CALX vs CSCO

For growth investors, Calix, Inc.

(CALX) is the stronger pick with 20. 3% 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 Calix, Inc. at 167. 4x. On forward P/E, Cisco Systems, Inc. is actually cheaper at 22. 2x — notably different from the trailing picture, reflecting expected earnings growth. 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 -9. 3% for Calix, Inc. (CALX). Over 10 years, the gap is even starker: MSI returned +554. 6% versus CSCO's +301. 7%. 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, Calix, Inc. (CALX) carries a lower debt/equity ratio of 3% versus 4% for Motorola Solutions, Inc. — giving it more financial flexibility in a downturn.

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

(CALX) is pulling ahead at 20. 3% versus 1. 5% for Digi International Inc. (DGII). On earnings-per-share growth, the picture is similar: Calix, Inc. grew EPS 157. 8% year-over-year, compared to 0. 4% for Cisco Systems, Inc.. Over a 3-year CAGR, MSI leads at 8. 6% 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 1. 8% for Calix, 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. 1% for CALX. At the gross margin level — before operating expenses — CSCO leads at 64. 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, Cisco Systems, Inc. (CSCO) trades at 22. 2x forward P/E versus 26. 9x for Digi International Inc. — 4. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CALX: 40. 2% to $61. 00.

In this comparison, CSCO (1.

7% yield), MSI (1. 0% yield) pay a dividend. DGII, CALX 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%, DGII: +463. 4%), 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.

In terms of investment character: MSI is a mid-cap quality compounder stock; DGII is a small-cap quality compounder stock; CALX is a small-cap high-growth stock; CSCO is a large-cap quality compounder stock. MSI, CSCO pay a dividend while DGII, CALX 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.