Financial Analysis: BlackBerry (BB) versus T-Mobile Us (PCS)

BlackBerry (NYSE: BB) and T-Mobile Us (NYSE:PCS) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Earnings & Valuation

This table compares BlackBerry and T-Mobile Us’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
BlackBerry $1.31 billion 4.37 -$1.21 billion $0.84 12.85
T-Mobile Us N/A N/A N/A $0.24 49.33

T-Mobile Us has higher revenue, but lower earnings than BlackBerry. BlackBerry is trading at a lower price-to-earnings ratio than T-Mobile Us, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BlackBerry and T-Mobile Us’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackBerry 49.62% 2.70% 1.78%
T-Mobile Us N/A N/A N/A

Analyst Ratings

This is a summary of current ratings for BlackBerry and T-Mobile Us, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackBerry 3 10 4 0 2.06
T-Mobile Us 0 2 6 0 2.75

BlackBerry presently has a consensus price target of $9.54, indicating a potential downside of 11.55%. T-Mobile Us has a consensus price target of $70.75, indicating a potential upside of 497.55%. Given T-Mobile Us’ stronger consensus rating and higher possible upside, analysts plainly believe T-Mobile Us is more favorable than BlackBerry.

Insider and Institutional Ownership

59.8% of BlackBerry shares are owned by institutional investors. 22.7% of BlackBerry shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

BlackBerry beats T-Mobile Us on 7 of the 10 factors compared between the two stocks.

About BlackBerry

BlackBerry Limited (BlackBerry) provides mobile communications solutions. The Company is engaged in the sale of smartphones and enterprise software and services. The Company’s products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging. It is engaged in providing enterprise mobility management (EMM) and mobile security, and offers a portfolio of enterprise software solutions and services that can be deployed across a range of ecosystems and devices, including BlackBerry Enterprise Service (BES) 12 and Good Platforms, BES12 Cloud, enterprise file-sync-and-share (EFSS), SecuSUITE for Enterprise, Enhanced subscriber identity module (SIM)-Based Licensing (ESBL), WorkLife by BlackBerry solution and Professional Cybersecurity Services. The BlackBerry Technology Solutions business unit consists of five units: QNX, Certicom, Paratek, the BlackBerry IoT Platform and Intellectual Property and Patent Licensing (IPPL).

About T-Mobile Us

MetroPCS Communications, Inc. (MetroPCS Communications) is a facilities-based wireless broadband mobile communications provider in the United States, including the Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco, and Tampa/Sarasota metropolitan areas. It offers wireless broadband mobile services under the MetroPCS brand in selected metropolitan areas in the United States. It provides a variety of wireless broadband mobile communications services to its customers on a no long-term contract, paid-in-advance basis. As of December 31, 2011, it had over 9.3 million customers. All of its services are provided through wholly owned subsidiaries of MetroPCS Wireless, Inc., an indirect wholly owned subsidiary of MetroPCS Communications. In January 2011, it introduced long term evolution (4G LTE) service plans.

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