© Reuters. Blackberry vs. Motorola: Which Networking Stock is a Better Buy?
The networking industry has grown significantly over the past year with businesses’ increased dependence on cloud computing and other technology platforms that require networking. The increasing adoption of 5G and use of other advanced technologies are expected to continue to boost demand for networking solutions. So, we think established networking services providers BlackBerry (NYSE:) and Motorola (MSI) should benefit. But which of these two stocks is a better buy now? Let’s find out.BlackBerry Limited (BB) and Motorola Solutions, Inc. (NYSE:) are two established companies that play an important role in the networking industry. Headquartered in Waterloo, Canada, BB provides intelligent security software and services to enterprises and governments worldwide, leveraging artificial intelligence (AI) and machine learning. MSI provides mission critical communications and analytics in the United States, the United Kingdom, Canada, and internationally. It operates through two segments: products and systems integration, and software & services.
While the COVID-19 pandemic-induced remote lifestyle increased the demand for networking solutions exponentially, that demand is expected to be sustained in the near-term, owing to technological advancements in 5G, internet of things (IoT) and artificial intelligence (AI), among others. According to Global Market Insights, the data center networking industry is expected to grow at an approximate 15% CAGR between 2021 – 2027. Investors’ interest in the networking industry is evident in Invesco Dynamic Networking ETF’s (PXQ) 28.1% returns over the past nine months.
So, both BB and MSI could keep witnessing increasing demand for their solutions in the coming months. But while BB has gained 165% over the past year, MSI has returned 40.7%. Furthermore, in terms of six months’ performance, BB is a clear winner with 62.7% returns versus MSI’s 23.2%. But which of these two stocks is a better pick now? Let’s find out.
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