Sonim Technologies vs. Nokia: Which Ultra-Rugged Mobile Phone Manufacturer is a Better Choice?

StockNews

Published Sep 13, 2021 05:25PM ET

Updated Sep 13, 2021 06:30PM ET

Sonim Technologies vs. Nokia: Which Ultra-Rugged Mobile Phone Manufacturer is a Better Choice?

The demand for ultra-rugged phones has grown in recent years, given their durability compared to regular phones. This growing demand should incentivize makers of these phones to upgrade user interfaces and manufacture 5G-enabled devices to offer a better user experience. We think both Nokia (NYSE:NOK) and Sonim Technologies (NASDAQ:SONM) should benefit from the sector tailwinds. But which of these stocks is a better buy now? Let’s find out.Nokia Corporation (NOK), which is headquartered in Espoo, Finland, and Sonim Technologies, Inc. (SONM) in San Mateo, Calif., are well-known ultra-rugged phone manufacturers worldwide. NOK is engaged in the network and Internet protocol (IP) infrastructure, software, and related services market. It serves communications service providers, governments, large enterprises, and consumers. SONM manufactures and designs mobile phones and accessories, primarily for wireless carriers, and sells ruggedized phones, barcode scanners, and accessories through international distribution channels. The company serves transportation and logistics, construction, manufacturing, facilities management, energy and utility, and public sectors.

Ultra-rugged phones enjoy a much longer life cycle than regular consumer smartphones. Because the COVID-19 pandemic required businesses to change their operations, ultra-rugged phones played a significant role in several industries' adaptation. And with the integration of better user interfaces and 5G, the demand for these phones is expected to continue rising. The North American rugged phones market is expected to grow at 6.7% CAGR to $1.43 billion by 2027. So, both NOK and SONM should benefit.

While SONM’s shares lost 40% in price over the past six months, NOK has surged 47.2%. NOK is a clear winner with 7.2% gains versus SONM’s negative returns in terms of their past three months’ performance. But which of these stocks is a better pick now? Let’s find out.

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