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Most computer hardware companies are expected to thrive this year and beyond as the digital era demands more advanced computing systems to utilize evolving technologies. Two major players in this industry—Dell (DELL) and Logitech (NASDAQ:LOGI)—have been expanding their product portfolios to boost sales. But which of these two stocks is a better buy now? Let’s find out.Dell Technologies Inc. (NYSE:DELL) and Logitech International S.A. (LOGI) are two popular players in the computer hardware industry. DELL’s products include desktop personal computers, notebooks and tablets, and peripherals, such as monitors, printers and projectors. It operates through two segments: its Infrastructure Solutions Group, and its Client Solutions Group. Headquartered in Lausanne, Switzerland, LOGI is known for offerings such as a wireless mouse and corded and cordless keyboards. It also offers a range of gaming gear, such as headsets, gamepads and steering wheels.
While the broader technology industry has been witnessing a slump lately, with investors shifting focus to cyclical stocks amid the economic recovery and avoiding expensive tech stocks on concerns over rising inflation, the rising demand for technology products and services should help the industry recover quickly. The demand for computer hardware is expected to increase in the coming quarters. That’s because the increasing use of advanced technologies, such as the internet of things (IoT) and artificial intelligence (AI), will require advanced computer hardware. According to the Business Research Company, the global hardware market is expected to grow at a 6% CAGR over the next four years. So, we think both DELL and LOGI should benefit from the industry tailwinds.
While LOGI has gained 115.1% over the past year, DELL has returned 108.3%. However, in terms of year-to-date performance, DELL is a clear winner with 40.3% returns versus LOGI’s 31.3%. But which of these two stocks is a better pick now? Let's find out.
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