The networking industry has grown significantly over the past year and is expected to continue benefiting from the increasing adoption of 5G and uptake of other advanced technologies. So, we expect popular networking companies Nokia (NYSE:NOK) and Juniper (JNPR) 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 Juniper Networks, Inc. (NYSE:JNPR) are two prominent players in the networking industry. Headquartered in Espoo, Finland, NOK provides mobile and fixed network solutions worldwide. It operates through three segments: ultra-broadband networks; IP networks and applications; and Nokia Technologies. JNPR designs, develops, and sells networking products and services worldwide. Its offerings include routing products, MX series ethernet routers and PTX series packet transport routers.
Thanks to consistent 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 increasing in the coming months. 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. As such, NOK and JNPR could continue witnessing increasing demand for their solutions.
But, while NOK has gained 25.8% over the past year, JNPR has returned 12.7%. Also, in terms of six months’ performance, NOK is a clear winner with 38.2% returns versus JNPR’s 26.5%. But which of these two stocks is a better pick now? Let's find out.