The networking industry has grown significantly over the past year and is expected to continue benefiting from the increasing adoption of 5G and utilization of other advanced technologies. So, popular networking companies Nokia (NYSE:NOK) and Ciena (NYSE:CIEN) are expected to benefit from the industry tailwinds. But which of these two stocks is a better buy now? Let’s find out. Nokia Corporation (NOK) and Ciena Corporation (CIEN) are two prominent players in the networking industry. Headquartered in Finland, NOK provides mobile and fixed network solutions worldwide. It operates through three segments: Ultra Broadband Networks; IP Networks and Applications; and Nokia Technologies. CIEN provides network hardware, software, and support services to its clients around the globe. The company's networking platforms segment offers hardware networking products and solutions.
Thanks to the continuing advancements in technologies such as 5G, internet of things (IoT) and artificial intelligence (AI), among others, the demand for networking solutions is expected to continue growing. Indeed, the data center networking industry is expected to grow at an approximate 15% CAGR between 2021 - 2027, according to a report by Global Market Insights. And, according to Markets and Markets, the global Network as a Service (NaaS) market size is expected to grow from $10.4 billion in 2021 to $37.5 billion by 2026, at a CAGR of 29.4%. Consequently, both NOK and CIEN should continue to see increasing demand for their solutions.
While NOK has gained 38.6% year-to-date, CIEN has returned 9.2%. Furthermore, in terms of their past six months’ performance, NOK is a clear winner with 34.2% returns versus CIEN’s 12.2%. But which of these two stocks is a better pick now? Let's find out.