Head to Head Survey: New Relic (NYSE:NEWR) and BlackBerry (NYSE:BB)


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New Relic (NYSE:NEWR) and BlackBerry (NYSE:BB) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Insider & Institutional Ownership

86.0% of New Relic shares are owned by institutional investors. Comparatively, 46.6% of BlackBerry shares are owned by institutional investors. 17.4% of New Relic shares are owned by company insiders. Comparatively, 1.6% of BlackBerry shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for New Relic and BlackBerry, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Relic 2 10 5 0 2.18
BlackBerry 2 5 0 0 1.71

New Relic currently has a consensus target price of $70.40, indicating a potential upside of 5.44%. BlackBerry has a consensus target price of $7.50, indicating a potential downside of 17.58%. Given New Relic’s stronger consensus rating and higher probable upside, research analysts plainly believe New Relic is more favorable than BlackBerry.

Profitability

This table compares New Relic and BlackBerry’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Relic -20.65% -26.93% -8.39%
BlackBerry -86.01% 4.12% 2.56%

Risk & Volatility

New Relic has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, BlackBerry has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Valuation & Earnings

This table compares New Relic and BlackBerry’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Relic $599.51 million 7.02 -$88.94 million ($1.08) -61.82
BlackBerry $1.04 billion 4.95 -$152.00 million $0.02 455.00

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

Summary

New Relic beats BlackBerry on 8 of the 14 factors compared between the two stocks.

About New Relic

New Relic, Inc., a software-as-a-service company, provides platform that companies use to build, develop, and operate their digital businesses worldwide. It offers a suite of products on its open and extensible cloud-based platform, New Relic One Platform, which enables users to collect, store, and analyze telemetry data flowing through and about their software. It provides prebuilt dashboards and visualizations, as well as the ability to search across data types, create customized dashboards, and build applications that can be shared and customized by other users. The company offers customers with software code to add to their applications and infrastructure; open data application performance interfaces, and software development kits, as well as open source connectors and technologies for customers, partners, and third-party developers to extend its platform into their products; cloud-based architecture and big data database; and New Relic Application Performance Monitoring, Mobile, Browser, Synthetics, Infrastructure, and Insights products for analyzing data. It also provides New Relic chart builder, dashboards, and programmability features that allow customers to use connected data to build visuals; New Relic Applied Intelligence to spot abnormal behavior across billions of pieces of data; and New Relic Alerts, which provides a centralized notification system. It sells its products through direct sales organizations, and online and offline sales. The company was founded in 2007 and is headquartered in San Francisco, California.

About BlackBerry

BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company leverages artificial intelligence and machine learning to deliver solutions in the areas of cybersecurity; safety and data privacy; and endpoint security management, encryption, and embedded systems. It offers BlackBerry Spark software platform that includes a suite of security software products and services comprising BlackBerry Cylance, BlackBerry UEM, BlackBerry Dynamics, and BlackBerry Workspaces; and BlackBerry Spark SDK to promote the evolution of a platform ecosystem by enabling enterprise and independent software vendor developers to integrate the security features of BlackBerry Spark into their own mobile and web applications. BlackBerry Limited also provides BlackBerry Internet of Things (IoT) solutions, including BlackBerry QNX, BlackBerry AtHoc, SecuSUITE, BlackBerry Certicom, BlackBerry Radar, and other IoT applications; and manages and monetizes BlackBerry patents and applications. As of February 29, 2020, the company owned approximately 38,000 worldwide patents and applications. BlackBerry Limited 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 computing; and an agreement with Amazon Web Services, Inc. to develop and market BlackBerry's intelligent vehicle data platform. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was founded in 1984 and is headquartered in Waterloo, Canada.

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