Comparing BlackBerry (BB) & Its Peers

BlackBerry (NYSE: BB) is one of 33 public companies in the “Wireless Telecommunications Services” industry, but how does it compare to its rivals? We will compare BlackBerry to similar businesses based on the strength of its valuation, profitability, institutional ownership, dividends, earnings, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for BlackBerry and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackBerry 3 10 4 0 2.06
BlackBerry Competitors 523 1622 1798 62 2.35

BlackBerry presently has a consensus target price of $9.54, indicating a potential downside of 11.38%. As a group, “Wireless Telecommunications Services” companies have a potential upside of 21.49%. Given BlackBerry’s rivals stronger consensus rating and higher possible upside, analysts plainly believe BlackBerry has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

59.2% of BlackBerry shares are held by institutional investors. Comparatively, 40.2% of shares of all “Wireless Telecommunications Services” companies are held by institutional investors. 22.7% of BlackBerry shares are held by company insiders. Comparatively, 12.5% of shares of all “Wireless Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares BlackBerry and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BlackBerry $1.31 billion -$1.21 billion 11.22
BlackBerry Competitors $27.09 billion $1.51 billion -209.31

BlackBerry’s rivals have higher revenue and earnings than BlackBerry. BlackBerry is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares BlackBerry and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackBerry 49.62% 2.70% 1.78%
BlackBerry Competitors -313.90% -3.39% -9.52%

Volatility and Risk

BlackBerry has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, BlackBerry’s rivals have a beta of 0.84, meaning that their average share price is 16% less volatile than the S&P 500.

Summary

BlackBerry beats its rivals on 7 of the 13 factors compared.

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).

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