IQGeo (IQG) & Vianet (VNET): 2 AIM-listed IoT stocks to buy now

Highlights 

  • IQGeo Group’s software was recently selected by a leading electrical utility provider in Japan.
  • Vianet’s smart machines division added 7,200 new connected devices in FY 2021.

The Internet of Things (IoT) encompasses an ecosystem of interconnected devices that ultimately reduces dependence on direct human-to-computer interaction. The concept allows endless opportunities for enhancing efficiencies, lowering waste, and saving money. The technology is currently revolutionising smartphones, household appliances, healthcare monitoring systems, traffic management systems, jet engines, and activity trackers, among others. Reflecting the plethora of applications associated with this technology, the companies involved in this space serve a broad range of sectors.

Let us explore the investment potential in the IoT sector through these AIM-listed internet of things stocks IQGeo Group Plc and Vianet Group Plc.

IQGeo (IQG) & Vianet (VNET): One year return and market cap

(Data source: Refinitiv)

IQGeo Group Plc (LON: IQG)

IQGeo Group is a technology provider offering geospatial software and IoT solutions for the utility and telecommunications industries. Recently, the company’s software was selected by a leading electrical utility provider in Japan. The new contract will be applicable for over 4,000 licences and an annual subscription value of over £500k.

IQGeo Group’s shares are currently trading at GBX 131.00, up by 0.38% at 10:05 AM GMT+1 on Thursday 23 September 2021. The shares of IQGeo Group returned 89.43% in the last one year to shareholders, and the market cap is £74.79 million.

For half-year ended 30 June 2021, IQGeo Group’s revenues grew by 58% year-on-year to £2.6 million compared to £1.6 million in H1 2020. The company’s net cash balance as of 30 June 2021 was £12.1 million compared to £10.5 million as of 31 December 2020 and £11.2 million as of 30 June 2020.

Vianet Group Plc (LON: VNET)

Vianet Group is a provider of data management services and real-time monitoring systems. The company’s systems can provide actionable business insights through devices connected to its Internet of Things platform.

Vianet Group’s shares are currently trading at GBX 115.50, up by 0.87% at 10:21 AM GMT+1 on Thursday 23 September 2021. The shares of Vianet Group returned 31.00% in the last one year to shareholders, and the market cap is £33.15 million.

For FY 2021, Vianet Group’s revenues declined by 48% year-on-year to £8.37 million compared to £16.28 million in FY 2020, mirroring the impact of COVID-19. The company’s loss before taxation was £2.82 million in FY 2021 compared to £2.40 million in profit in FY 2020. Its smart machines division added 7,200 new connected devices in FY 2021 (FY2020: 12,059).

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