Financial analysis: BlackBerry (BB) versus its peers


BlackBerry (NASDAQ: BB – Get Rating) is one of 402 publicly traded companies in the “pre-packaged software” sector, but how does it compare to its peers? We’ll compare BlackBerry to related companies based on its dividend strength, profitability, earnings, risk, valuation, analyst recommendations and institutional ownership.

Risk and Volatility

BlackBerry has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, BlackBerry’s peers have a beta of -12.05, indicating that their average stock price is 1,305% less volatile than the S&P 500.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of BlackBerry and its peers.

Gross revenue Net revenue Price/earnings ratio
Blackberry $718.00 million $12.00 million -15.36
BlackBerry Competitors $1.74 billion $279.31 million 1.91

BlackBerry peers have higher revenue and profit than BlackBerry. BlackBerry trades at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares the net margins, return on equity and return on assets of BlackBerry and its peers.

Net margins Return on equity return on assets
Blackberry 1.67% -5.93% -3.23%
BlackBerry Competitors -59.38% -64.30% -6.65%

Analyst Notes

This is a summary of current recommendations for BlackBerry and its peers, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Blackberry 0 0 0 0 N / A
BlackBerry Competitors 2748 13412 24571 678 2.56

As a group, “pre-packaged software” companies have an upside potential of 44.99%. Since BlackBerry’s peers have higher upside potential, analysts clearly believe that BlackBerry has less favorable growth aspects than its peers.

Insider and Institutional Ownership

36.1% of BlackBerry shares are held by institutional investors. By comparison, 61.3% of the shares of all “pre-packaged software” companies are held by institutional investors. 1.6% of BlackBerry stock is held by company insiders. By comparison, 17.6% of the shares of all “pre-packaged software” companies are held by insiders of the company. Strong institutional ownership is an indication that endowments, large fund managers, and hedge funds believe a company will outperform the market over the long term.

Summary

BlackBerry’s peers beat BlackBerry on 6 of the 10 factors compared.

About BlackBerry (Get a rating)

BlackBerry Limited provides intelligent security software and services to businesses and governments around the world. The company relies on artificial intelligence and machine learning to provide solutions in the areas of cybersecurity, data security and privacy; and endpoint security management, encryption and integrated systems. It offers the BlackBerry Spark software platform which includes a suite of security software products and services including BlackBerry UEM, BlackBerry Dynamics and BlackBerry Workspaces solutions; and BlackBerry Spark SDK to promote the evolution of a platform ecosystem by enabling enterprise and independent software developers to integrate BlackBerry Spark security features into their own mobile and web applications. The company also provides BlackBerry Internet of Things (IoT) solutions, including BlackBerry QNX, BlackBerry Certicom, BlackBerry Radar, BlackBerry Jarvis, BlackBerry AtHoc, BlackBerry Alert, SecuSUITE and other IoT applications. As of February 28, 2021, it held approximately 38,000 patents and applications worldwide. The company has a partnership with the University of Windsor to develop and deliver a cybersecurity curriculum for the university’s graduate master’s program in applied computer science; and an agreement with Amazon Web Services, Inc. to develop and market BlackBerry’s IVY, an intelligent vehicle data platform. It has a partnership with Okta, Inc. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was incorporated in 1984 and is headquartered in Waterloo, Utah. Canada.



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Sarah J. Greer