Rising demand for networking solutions to facilitate remote working has driven the industry’s growth over the past year. And because remote working is expected to continue for the foreseeable future, the industry should keep growing. So, we think Extreme Networks (NASDAQ:EXTR) and Sonim Technologies (NASDAQ:SONM) could benefit from the industry tailwinds. But which of these stocks is a better buy now? Read more to find out.With a $1.42 billion market capitalization, Extreme Networks, Inc. (EXTR) in San Jose, Calif., provides software-driven networking solutions for enterprise, data center, and service provider customers worldwide. In addition, it designs, develops, and manufactures wired and wireless network infrastructure equipment. In comparison, San Mateo, Calif.’s Sonim Technologies, Inc. (SONM) provides ruggedized mobile phones and industrial-grade accessories for task workers. It has a market capitalization of $37.47 million.
The demand for networking solutions has soared over the past year as people spent most of the time indoors amid the COVID-19 pandemic and relied on smart gadgets for their work. The industry should keep growing with 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 - 2026. Therefore, both EXTR and SONM should benefit.
SONM has gained 6.7% in price over the past month, while EXTR has delivered negative returns. However, EXTR’s 92.7% gains over the past nine months are significantly higher than SONM’s negative returns. Moreover, EXTR is the clear winner with 147.8% price gains versus SONM’s negative returns in terms of the past year’s performance.