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The Internet of Things (IoT) refers to the networks of devices and objects that communicate with other devices in the same network via connections to data centers. The global IoT market is expected to reach a value of US$1.39 trillion by 2026, up from US$761.4 billion in 2020 for a compound annual growth rate of 10.53%. With the IoT market exploding, let's look into the best IoT stock between Cisco Systems and Alarm.com.
Cisco, which manufactures networking hardware, software, and telecommunications equipment makes the cellular technology needed to connect IoT devices and allow them to communicate with each other. It is the leading provider of enterprise networking hardware. Because its products form the backbone of the internet, the tech giant benefits from the explosion of internet-enabled devices. Cisco is also one of the largest cybersecurity companies. The company offers hardware, software, and services aimed at securing networks against threats, including those specifically targeting IoT systems. Its current IoT stock is US$45.25, 1.18% down from the previous close.
While Cisco's market cap exceeds tens of billions of dollars, cloud software provider Alarm.com is valued at just a few billion. Its relatively small size makes it riskier than the tech giant, but the company has plenty of growth potential. Alarm.com provides a cloud-based software platform for managing a connected home or business. Subscribers use the software to manage internet-enabled devices, including security cameras, lights, locks, thermostats, and a range of other supported products. Its current IoT stock is US$65.12, 1.39% down from the previous close.
Cisco is sensitive to global economic conditions given that its customer base includes many large companies, organizations, and governments. However, investing in the stock is an excellent way to gain exposure to IoT without taking big risks. Alarm.com currently works with almost 11,000 service providers and has more than 8.4 million subscribers, and its platform connects more than 100 million devices.
You can now choose which one is the best stock to add in your portfolio.
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