The increasing adoption of cloud-based software products to enhance flexibility in business operations should drive the software-as-a-service (SaaS) industry’s growth. So, we believe SaaS stocks Twilio (NYSE:TWLO) and MiX Telematics (NYSE:MIXT) should benefit. But which of these stocks is a better buy now? Let’s find out.Twilio Inc. (TWLO) in San Francisco, and MiX Telematics Limited (MIXT) in Midrand, South Africa, are two prominent players in the software industry. TWLO provides a cloud communications platform that enables developers to build, scale, and operate customer engagement within software applications internationally. It also offers APIs that enable developers to embed voice, messaging, video, and email capabilities into their applications. In comparison, MIXT offers fleet and mobile asset management solutions through a software-as-a-service (SaaS) delivery model to customers worldwide. The company's products and services provide enterprise fleets, small fleets, and consumers with safety, efficiency, and security solutions.
The rising adoption of cloud-based software solutions by enterprises to facilitate remote working and enable flexibility in their operations has been driving the Software-as-a-Service (SaaS) industry’s growth. Due to the resurgence of COVID-19 cases, widespread delays in office reopening plans should keep SaaS in demand for the foreseeable future. Indeed, the global SaaS market is expected to grow at a 12.5% CAGR to $436.9 billion by 2025. So, both TWLO and MIXT should benefit.
In terms of their past nine months’ price performance, MIXT is a clear winner with 3.2% gains versus TWLO’s negative returns. But which of these stocks is a better pick now? Let’s find out.