Because remote working is expected to continue for the foreseeable future, the demand for networking solutions is expected to rise markedly. So, networking giants Cisco (CSCO) and Ubiquiti (UI) should benefit. But which of these two stocks is a better buy now? Read more to find out. Cisco Systems (NASDAQ:CSCO) in San Jose, Calif., designs, manufactures and sells internet protocol-based networking and other communications and information technology products. In addition, it provides infrastructure platforms that include networking technologies for switching, routing, wireless, and data center products. In comparison, Ubiquiti Inc. (UI) develops networking technology solutions for high-capacity distributed Internet access, unified information technology, and consumer electronics. UI is based in San Jose, Calif.
Amid the COVID-19 pandemic, networking solutions were in high demand as people spent most of their time indoors and relied on smart gadgets for their work. This trend is expected to continue in the near term due to the accelerated pace of digitization and increasing adoption of network-based technologies. According to a report by Markets and Markets, the global network-as-a-service (NaaS) market is expected to grow at a 29.4% CAGR from 2021 to 2026. Consequently, both CSCO and UI should benefit.
CSCO shares have gained 3.4% in price over the past three months, while UI has returned 1.1%. Also, CSCO’s 22.2% price gains over the past nine months are higher than UI’s 20% returns. Furthermore, CSCO is the clear winner with 23.1% gains versus UI’s 10.7% returns in terms of year-to-date performance.