BlackBerry (BB) versus Its Rivals Head to Head Analysis

BlackBerry (NYSE:BB) is one of 959 public companies in the “Software” industry, but how does it contrast to its rivals? We will compare BlackBerry to similar businesses based on the strength of its earnings, analyst recommendations, valuation, risk, dividends, profitability and institutional ownership.

Risk & Volatility

BlackBerry has a beta of 2.23, suggesting that its stock price is 123% more volatile than the S&P 500. Comparatively, BlackBerry’s rivals have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.

Institutional & Insider Ownership

54.5% of BlackBerry shares are held by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are held by institutional investors. 0.5% of BlackBerry shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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	13.09%	13.71%	8.36%
BlackBerry Competitors	-599.26%	26.08%	-8.90%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackBerry	0	7	2	0	2.22
BlackBerry Competitors	5835	21607	44998	1500	2.57

BlackBerry presently has a consensus target price of $9.86, suggesting a potential upside of 4.90%. As a group, “Software” companies have a potential upside of 28.05%. Given BlackBerry’s rivals stronger consensus rating and higher probable upside, analysts plainly believe BlackBerry has less favorable growth aspects than its rivals.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
BlackBerry	$549.10 million	$53.20 million	78.31
BlackBerry Competitors	$1.90 billion	$382.82 million	112.40

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

Summary

BlackBerry rivals beat BlackBerry on 9 of the 13 factors compared.

BlackBerry Company Profile

BlackBerry Limited is a Canadian software company that provides cybersecurity and secure communications products, as well as embedded software for vehicles and other connected systems. The company serves businesses, government agencies and organizations around the world. Its cybersecurity and communications offerings include endpoint protection, device and identity management, secure messaging, and crisis communications. BlackBerry also develops QNX software, an embedded operating system and development platform used in automotive systems and other safety-critical applications.