Financial Analysis: BlackBerry (BB) versus Its Peers

BlackBerry (NASDAQ:BBGet Rating) is one of 402 publicly-traded companies in the “Prepackaged software” industry, but how does it compare to its peers? We will compare BlackBerry to related businesses based on the strength of its dividends, 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.

Earnings & Valuation

This table compares BlackBerry and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BlackBerry $718.00 million $12.00 million -15.36
BlackBerry Competitors $1.74 billion $279.31 million 1.91

BlackBerry’s peers have higher revenue and earnings than BlackBerry. BlackBerry is trading 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 BlackBerry and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackBerry 1.67% -5.93% -3.23%
BlackBerry Competitors -59.38% -64.30% -6.65%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackBerry 0 0 0 0 N/A
BlackBerry Competitors 2748 13412 24571 678 2.56

As a group, “Prepackaged software” companies have a potential upside of 44.99%. Given BlackBerry’s peers higher possible upside, analysts plainly believe BlackBerry has less favorable growth aspects than its peers.

Insider & Institutional Ownership

36.1% of BlackBerry shares are held by institutional investors. Comparatively, 61.3% of shares of all “Prepackaged software” companies are held by institutional investors. 1.6% of BlackBerry shares are held by company insiders. Comparatively, 17.6% of shares of all “Prepackaged 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.

Summary

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

About BlackBerry (Get Rating)

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 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 vendor developers to integrate the security features of BlackBerry Spark 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 owned approximately 38,000 worldwide patents and applications. 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 computing; 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, Canada.

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