Nokia Vs. Ericsson: Which 5G Stock Is A Better Buy?

As 5G network deployment gains momentum, driven by broad demand amid a rapid digital transformation globally, Nokia Corporation (NOK) and Telefonaktiebolaget LM Ericsson (ERIC) are strategically positioned to benefit. With business enterprises heavily dependent on next generation networking to meet remote working and entertainment requirements, we believe these companies are positioned nicely to outperform the broader market. But let’s find out which of these names is a better buy now.

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Nokia Corporation (NOK - Get Rating) and Telefonaktiebolaget LM Ericsson (ERIC - Get Rating) are two renowned multinational telecommunications and networking companies, operating worldwide. Founded in 1865, NOK operates through Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies segments. ERIC operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other.

5G technology is expected to witness widespread adoption this year as increasing numbers of organizations adopt the new network standard and edge computing to improve their accessibility and connectivity. As the next phase of digital transformation develops, a blend of cloud computing and 5G networks is becoming increasingly vital in supporting a digitally interconnected economy. Hence, wireless telecommunication providers such as NOK and ERIC, which are making strategic investments in 5G, are expected to witness robust demand.

While NOK has returned 33.6% over the past year, ERIC gained 80.7%. In terms of the past three months’ performance, ERIC is the clear winner with 11.9% gains versus NOK’s 2.3% returns. But which of these stocks is a better pick now? Let’s find out.

Latest Movements

This month,  NOK partnered up with Circle Fiber to deploy 10 Gigabit broadband to 125,000 premises in Southeast Missouri. This should allow NOK to provide a fiber-to-the-premise network that will offer its customers a seamless internet experience at home or in the office.

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Dick Kaplan 1 week ago Member's comment

This article is a rear-view mirror assessment. If your buying #NOK, it’s a bet on the 1-3 year period ahead and for that, I think there’s a compelling bull case, especially given current value. I also think that very soon, the share price will begin with a “5”.

Susan Miller 1 week ago Member's comment

Vivian Lewis covers these stocks. Vivian, do you agree with this?