Azure architecture question for transfer data to Azure SQL Database

I want to switch my on premise data collection to Azure environment.

At the moment I`m saving up to 500k (messages) on data a day.
Before storing the data in the database, i doing some data preparation in a C# application like getting/setting relation ids.

Now for my question:
I read a lot of azure documentation and come to the conclusion that i have two ways.

1. IOT Hub -> Azure Stream Analytics -> Azure SQL Database
My understanding is that if i use Azure Functions, i could just use my C# application for data preparation and insert.

2. IOT Hub -> Azure Functions -> Azure SQL Database
With Stream Analytics i could use reference data for data preparation before insert to the database but not sure of the capabilities of this service.

Can anyone with experience give me tips on how to best implement the use case in azure.
Is there maybe even a better solution as the two i wrote above?

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