Digital Ally, Inc. DGLY

Competitive advantage analysis · communication-services

Software & SaaS Specialized
Overall moat score
28/100
Developing

About Digital Ally, Inc.

Digital Ally, Inc. produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States. It operates through three segments: Video Solutions, Revenue Cycle Management, and Entertainment. The company offers in-car digital video mirror systems for law enforcement; in-car digital video event recorder systems for commercial … Full DGLY analysis →

Competitive advantage assessment

Key strengths

  • Margins Hold Through Cycles Margin durability is strong (score 0.81), pointing to resilient pricing power.
  • FCF Margin Is Improving FCF trend is favorable (score 0.94), indicating improving cash scalability.

Key risks

  • Returns Trail Peers Return profile is weak (score 0.00), pointing to limited capital efficiency.
  • Lumpy Revenue Trajectory Revenue consistency is weak (score 0.20), suggesting demand may be less recurring than peers.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
42

Where DGLY ranks in Internet Content & Information

Digital Ally, Inc. ranks #65 of 78 scored companies in Internet Content & Information by moat score — the top 83%. The widest moat in the group is Alphabet Inc. (GOOG) at 75/100.

Moat scores for companies ranked near DGLY in Internet Content & Information
# Company Moat score Rating
61 BuzzFeed, Inc. BZFD 34/100 Developing
62 BuzzFeed, Inc. BZFDW 34/100 Developing
63 Zhihu Inc. ZH 34/100 Developing
64 Jinxin Technology Holding Compa NAMI 33/100 Developing
65 Digital Ally, Inc. DGLY 28/100 Developing
66 Locafy Limited LCFYW 28/100 Developing
67 Super League Enterprise, Inc. SLE 27/100 Developing
68 Locafy Limited LCFY 26/100 Developing
69 Giftify, Inc. GIFT 26/100 Developing

See every Software & SaaS company ranked by moat score →

How DGLY scores on the Software & SaaS Specialized defenses

Pricing Power

Score 42 · 20% of the moat score

In software, pricing power is visible in gross margin: a vendor that has to discount in order to renew gives it up first.

Recurring Revenue Stickiness

Score 30 · 18% of the moat score

Recurring revenue is the model's central claim, and it is a moat only when customers renew and expand without being re-sold each year.

Innovation Engine

Score 30 · 16% of the moat score

Software is competed away rather than depreciated, so a vendor that stops investing loses its category.

Cash Scalability

Score 43 · 18% of the moat score

The test of a software business is whether growth eventually stops consuming cash.

Capital Efficiency

Score 0 · 16% of the moat score

A software platform employs very little capital, so a genuine franchise should produce high returns on it without leverage.

Balance Sheet Resilience

Score 16 · 12% of the moat score

Software companies fund years of customer acquisition before those customers pay back, which makes access to capital a strategic variable rather than a treasury detail.

How each Software & SaaS Specialized defense is measured, in full →

Understanding DGLY's moat

What is Digital Ally, Inc.'s moat score?

Digital Ally, Inc. (DGLY) scores 28 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #65 of 78 scored companies in Internet Content & Information, the top 83%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 77 companies in Internet Content & Information. Its strongest defense is Cash Scalability (43/100) and its weakest is Capital Efficiency (0/100).

How does Digital Ally, Inc. compare with other Internet Content & Information companies?

Digital Ally, Inc. ranks #65 of 78 scored companies in Internet Content & Information by moat score. The widest moat in Internet Content & Information is Alphabet Inc. (GOOG) at 75/100. The companies ranked closest are Jinxin Technology Holding Compa (NAMI) at 33 just above it and Locafy Limited (LCFYW) at 28 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Software & SaaS Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 77 companies in Internet Content & Information. The defenses are then weighted to produce the overall score out of 100.

Why is Digital Ally, Inc. scored with the Software & SaaS Specialized template?

Software costs almost nothing to reproduce, so the entire economic question is whether customers keep paying. Revenue is a subscription rather than a sale, the cost of winning a customer is paid years before that customer becomes profitable, and margins arrive only if renewals hold. The Software & SaaS template scores retention, reinvestment, and the point at which growth turns into cash.

Which competitive defenses are measured for Digital Ally, Inc.?

The Software & SaaS Specialized template measures 6 defenses, and DGLY scores: Pricing Power (42), Recurring Revenue Stickiness (30), Innovation Engine (30), Cash Scalability (43), Capital Efficiency (0), Balance Sheet Resilience (16). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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