With the increased use of various bandwidth-intensive services and the growing adoption of fiber optics across the globe, the fiber optics industry is poised to grow. Ciena (NYSE:CIEN) and CommScope (COMM) should benefit from industry tailwinds. But which of these two stocks is a better buy now? Read more to find out.Ciena Corporation (CIEN) provides network hardware, software, and services that support transport, routing, switching, aggregation, service delivery, and managing video, data, and voice traffic worldwide. It operates through four segments: Networking Platforms; Blue Planet Automation Software and Services; Platform Software and Service; and Global Services. On the other hand, CommScope Holding Company, Inc. (NASDAQ:COMM) provides infrastructure solutions for communications and entertainment networks. It operates through four segments: Broadband Networks; Home Networks; Outdoor Wireless Networks; and Venue and Campus Networks.
With the remote working culture becoming a new norm, the demand for reliable internet connection and high internet bandwidth from businesses and individuals have increased significantly, driving the need for fiber optics network infrastructure. Moreover, with the resurgence of omicron coronavirus cases and companies increasingly adopting technology-based solutions, the demand is expected to rise. Also, the $1 trillion infrastructure bill is expected to boost the fiber optics industry's growth in the upcoming years. According to Valuates Reports, the fiber optics market is expected to grow at a CAGR of 7.8% between 2021 and 2026. Therefore, both CIEN and COMM should benefit.
CIEN has gained 21.2% over the past month, while COMM has returned 20.4%. Also, CIEN’s 36.1% gains over the past three months are significantly higher than COMM’s negative returns. Moreover, CIEN is the clear winner with 59.1% gains versus COMM’s negative returns in terms of the past year’s performance.