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DGII vs HLIT
Which Stock Would AI Choose? Digi International (DGII) vs. Harmonic Inc. (HLIT) Stock Comparison
Key Takeaways
- Digi International (DGII) is an IoT (Internet of Things) connectivity provider benefiting from a fast-growing recurring revenue base and record quarterly results.
- Harmonic Inc. (HLIT) is pivoting to a pure-play broadband business, posting 43% year-over-year broadband revenue growth as it divests its video segment.
- Both stocks have shown strong momentum, but DGII carries a materially higher valuation multiple than HLIT.
- HLIT faces customer concentration risk, with its top two customers representing roughly 58% of revenue, while DGII has a more diversified, subscription-oriented model.
- Relative performance favors DGII on trend consistency, while HLIT offers a catalyst-driven turnaround story built on record backlog.
Introduction
Investors scanning the technology and communications landscape increasingly weigh high-growth hardware-to-software stories against valuation and catalyst risk. This stock comparison examines DGII (Digi International), a provider of IoT connectivity products and solutions, and HLIT (Harmonic Inc.), a leader in virtualized broadband and video delivery. Although both operate in adjacent network infrastructure markets, their business models, growth drivers, and risk profiles differ meaningfully. Growth-oriented traders may find the recurring-revenue momentum at DGII appealing, while value-focused investors may weigh HLIT's lower multiple and broadband backlog against its concentration and transition risks.
DGII Overview and Recent Performance
Digi International provides business- and mission-critical IoT connectivity products, services, and solutions across two segments: IoT Products & Services and IoT Solutions. The company has emphasized shifting its mix toward higher-margin, recurring revenue through subscription software, managed network services, and recent acquisitions such as Jolt and Particle. This strategy has driven a steep rise in annual recurring revenue (ARR), which reached a record $184 million in its latest reported fiscal quarter, up about 50% year over year, alongside record quarterly revenue and operating cash flow.
Recent market activity reflects strong momentum, with DGII shares advancing sharply over the past year and trading near multi-year highs before a modest pullback. Product launches such as the Digi EX60 5G enterprise router and AI-driven device-management tools have reinforced the growth narrative. However, that momentum has pushed the stock's valuation well above peer averages, leaving it sensitive to any slowdown in recurring-revenue growth or softening in regional demand.
HLIT Overview and Recent Performance
Harmonic provides virtualized broadband access solutions through its cOS software platform and associated hardware, alongside a video delivery business it has agreed to sell to MediaKind for $145 million. The divestiture positions the company as a focused broadband supplier as operators modernize networks with DOCSIS 4.0 and fiber. In its latest quarter, broadband revenue grew 43% year over year to roughly $121.7 million, with "rest of market" revenue up 78%, signaling meaningful progress in customer diversification.
Backlog and deferred revenue climbed 87% to about $582 million, and management raised its full-year broadband revenue outlook. HLIT has also returned capital through share repurchases. Yet sentiment remains tempered by concentration risk, since its two largest customers still account for a large share of revenue, and by supply-chain pressures on memory and other components that may weigh on margins in the back half of the year. The pending video sale introduces near-term transition and stranded-cost considerations.
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Head-to-Head Comparison
The two companies diverge on several dimensions. DGII operates a diversified IoT model with growing subscription economics, giving it comparatively stable, recurring revenue and a higher gross margin trajectory. HLIT is more dependent on capital-expenditure cycles of cable and telecom operators, creating lumpier revenue but a substantial order backlog that improves near-term visibility.
On momentum, both have been strong performers, but DGII has sustained a longer, more consistent uptrend, while HLIT has shown a more catalyst-driven, choppier path as it executes its divestiture. Valuation also separates them: DGII trades at a premium price-to-earnings multiple relative to its peer group, whereas HLIT carries a lower multiple that partly reflects its customer concentration and supply-chain risks. In short, DGII offers recurring-revenue stability at a richer price, while HLIT offers a value-oriented, transformation-driven opportunity with higher execution risk.
Tickeron AI Verdict
Based on observable factors such as trend consistency, revenue stability, and relative positioning, Tickeron's AI would most likely favor DGII in the current environment. The company's sustained uptrend, expanding recurring-revenue base, and record operational results suggest a more consistent momentum profile than HLIT, whose story remains tied to an uncompleted divestiture, customer concentration, and component-supply constraints. That said, the verdict is probabilistic rather than definitive: HLIT's record backlog and customer-diversification progress represent meaningful catalysts that could shift the balance if execution continues. The AI's preference reflects the relative stability of one trend over the higher-uncertainty, catalyst-driven profile of the other.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is DGII is a StrongBuy and HLIT is a StrongBuy.
DGII in upward trend: price may jump up because it broke its lower Bollinger Band on October 16, 2026
DGII may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 33 of 39 cases where DGII's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 85%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +2.84% 3-day Advance, the price is estimated to grow further. Considering data from situations where DGII advanced for three days, in 239 of 323 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
Bearish Trend Analysis
The 10-day RSI Indicator for DGII moved out of overbought territory on September 28, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In 33 of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at 72%.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Momentum Indicator moved below the 0 level on October 22, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DGII as a result. In 57 of 73 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 78%.
The Moving Average Convergence Divergence Histogram (MACD) for DGII turned negative on October 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 35 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 78%.
DGII moved below its 50-day moving average on October 22, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DGII crossed bearishly below the 50-day moving average on October 12, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 53%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DGII declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
The Aroon Indicator for DGII entered a downward trend on September 23, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 7 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 14 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. DGII’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.032) is normal, around the industry mean (7.180). P/E Ratio (56.434) is within average values for comparable stocks, (6.784). Projected Growth (PEG Ratio) (0.981) is also within normal values, averaging (0.778). Dividend Yield (0.000) settles around the average of (0.131) among similar stocks. P/S Ratio (5.330) is also within normal values, averaging (11.937).
The Tickeron SMR rating for this company is 78 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
HLIT in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 14, 2026
HLIT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 24 of 30 cases where HLIT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where HLIT's RSI Indicator exited the oversold zone, 16 of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 76%.
The Moving Average Convergence Divergence (MACD) for HLIT just turned positive on October 19, 2026. Looking at past instances where HLIT's MACD turned positive, the stock continued to rise in 34 of 43 cases over the following month. The odds of a continued upward trend are 79%.
Following a +3.65% 3-day Advance, the price is estimated to grow further. Considering data from situations where HLIT advanced for three days, in 229 of 303 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 45 of 61 cases where HLIT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 74%.
The Momentum Indicator moved below the 0 level on October 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on HLIT as a result. In 57 of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 75%.
The 50-day moving average for HLIT moved below the 200-day moving average on October 19, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HLIT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 72%.
The Aroon Indicator for HLIT entered a downward trend on October 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 42 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.054) is normal, around the industry mean (7.180). P/E Ratio (-24.610) is within average values for comparable stocks, (6.784). HLIT's Projected Growth (PEG Ratio) (1.570) is slightly higher than the industry average of (0.778). Dividend Yield (0.000) settles around the average of (0.131) among similar stocks. P/S Ratio (2.804) is also within normal values, averaging (11.937).
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 58 (best 1 - 100 worst), indicating steady price growth. HLIT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 91 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HLIT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
The Tickeron SMR rating for this company is 94 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 99 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
DGII | HLIT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 84 | 30 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 75 Overvalued | 42 Fair valued | |
PROFIT vs RISK RATING 1..100 | 14 | 91 | |
SMR RATING 1..100 | 78 | 94 | |
PRICE GROWTH RATING 1..100 | 37 | 58 | |
P/E GROWTH RATING 1..100 | 7 | 99 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
HLIT's Valuation (42) in the Telecommunications Equipment industry is somewhat better than the same rating for DGII (75) in the Computer Communications industry. This means that HLIT’s stock grew somewhat faster than DGII’s over the last 12 months.
DGII's Profit vs Risk Rating (14) in the Computer Communications industry is significantly better than the same rating for HLIT (91) in the Telecommunications Equipment industry. This means that DGII’s stock grew significantly faster than HLIT’s over the last 12 months.
DGII's SMR Rating (78) in the Computer Communications industry is in the same range as HLIT (94) in the Telecommunications Equipment industry. This means that DGII’s stock grew similarly to HLIT’s over the last 12 months.
DGII's Price Growth Rating (37) in the Computer Communications industry is in the same range as HLIT (58) in the Telecommunications Equipment industry. This means that DGII’s stock grew similarly to HLIT’s over the last 12 months.
DGII's P/E Growth Rating (7) in the Computer Communications industry is significantly better than the same rating for HLIT (99) in the Telecommunications Equipment industry. This means that DGII’s stock grew significantly faster than HLIT’s over the last 12 months.
| DGII | HLIT | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 72% | 1 day ago 76% |
| Stochastic ODDS (%) | 1 day ago 66% | 1 day ago 74% |
| Momentum ODDS (%) | 1 day ago 78% | 1 day ago 75% |
| MACD ODDS (%) | 1 day ago 78% | 1 day ago 79% |
| TrendWeek ODDS (%) | 1 day ago 74% | 1 day ago 69% |
| TrendMonth ODDS (%) | 1 day ago 65% | 1 day ago 63% |
| Advances ODDS (%) | 2 days ago 74% | 3 days ago 76% |
| Declines ODDS (%) | 9 days ago 67% | 1 day ago 72% |
| BollingerBands ODDS (%) | 1 day ago 85% | 1 day ago 80% |
| Aroon ODDS (%) | 1 day ago 73% | 1 day ago 62% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
DGII’s FA Score shows that 2 FA rating(s) are green while HLIT’s FA Score has 0 green FA rating(s).
- DGII’s FA Score: 2 green, 3 red.
- HLIT’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
DGII’s TA Score shows that 4 TA indicator(s) are bullish while HLIT’s TA Score has 4 bullish TA indicator(s).
- DGII’s TA Score: 4 bullish, 6 bearish.
- HLIT’s TA Score: 4 bullish, 5 bearish.
Price Growth
DGII (@Telecommunications Equipment) experienced а +5.51% price change this week, while HLIT (@Telecommunications Equipment) price change was +7.19% for the same time period.
The average weekly price growth across all stocks in the @Telecommunications Equipment industry was -6.40%. For the same industry, the average monthly price growth was -14.55%, and the average quarterly price growth was -17.22%.
Reported Earning Dates
DGII is expected to report earnings on Nov 11, 2026.
HLIT is expected to report earnings on Nov 02, 2026.
Industries' Descriptions
@Telecommunications Equipment (-6.40% weekly)The Telecommunications Equipment industry produces voice and data communications equipment, which includes fiber optic delivery products, digital signal processors, high-speed voice, data and video delivery. Additionally, satellite systems, global positioning systems, wireless data systems, personal communications equipment, telephone handsets and payload equipment for satellites also fall into this category. Apple Inc., QUALCOMM Incorporated and Nokia are major global players in this segment.
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DGII and
Correlation & Price change
A.I.dvisor indicates that over the last year, DGII has been loosely correlated with HLIT. These tickers have moved in lockstep 45% of the time. This A.I.-generated data suggests there is some statistical probability that if DGII jumps, then HLIT could also see price increases.
| Ticker / NAME | Correlation To DGII | 1D Price Change % | ||
|---|---|---|---|---|
| DGII | 100% | -3.32% | ||
| HLIT - DGII | 45% Loosely correlated | -5.96% | ||
| HPE - DGII | 40% Loosely correlated | -4.64% | ||
| BDC - DGII | 39% Loosely correlated | -4.01% | ||
| ITRN - DGII | 39% Loosely correlated | -0.94% | ||
| TSAT - DGII | 39% Loosely correlated | -4.33% | ||
More | ||||
HLIT and
Correlation & Price change
A.I.dvisor indicates that over the last year, HLIT has been loosely correlated with NOK. These tickers have moved in lockstep 52% of the time. This A.I.-generated data suggests there is some statistical probability that if HLIT jumps, then NOK could also see price increases.
| Ticker / NAME | Correlation To HLIT | 1D Price Change % | ||
|---|---|---|---|---|
| HLIT | 100% | -5.96% | ||
| NOK - HLIT | 52% Loosely correlated | -14.81% | ||
| VIAV - HLIT | 52% Loosely correlated | -14.38% | ||
| LTRX - HLIT | 49% Loosely correlated | -5.24% | ||
| SILC - HLIT | 49% Loosely correlated | -11.63% | ||
| ADTN - HLIT | 48% Loosely correlated | -3.59% | ||
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