Comparing BlackBerry (BB) & Its Peers

BlackBerry (NYSE:BB) is one of 953 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare BlackBerry to similar companies based on the strength of its dividends, valuation, analyst recommendations, institutional ownership, risk, earnings and profitability.

Volatility & Risk

BlackBerry has a beta of 2.23, suggesting that its share price is 123% more volatile than the S&P 500. Comparatively, BlackBerry’s peers have a beta of 1.21, suggesting that their average share price is 21% more volatile than the S&P 500.

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	13.09%	13.71%	8.36%
BlackBerry Competitors	-612.64%	20.88%	-8.99%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
BlackBerry	$549.10 million	$53.20 million	72.88
BlackBerry Competitors	$1.79 billion	$385.91 million	106.78

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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for BlackBerry and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackBerry	0	7	2	0	2.22
BlackBerry Competitors	5747	21523	44878	1497	2.57

BlackBerry presently has a consensus price target of $9.86, indicating a potential upside of 12.72%. As a group, “Software” companies have a potential upside of 28.87%. Given BlackBerry’s peers stronger consensus rating and higher probable upside, analysts plainly believe BlackBerry has less favorable growth aspects than its peers.

Insider and Institutional Ownership

54.5% of BlackBerry shares are owned by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are owned by institutional investors. 0.5% of BlackBerry shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

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

About BlackBerry

BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers CylanceENDPOINT, an integrated endpoint security solution; CylanceGUARD, a managed detection and response solution; CylanceEDGE, an AI-powered continuous authentication zero trust network access solution; CylanceINTELLIGENCE, a contextual cyber threat intelligence service; BlackBerry Dynamics offers a development platform and secure container for mobile applications; BlackBerry Workspaces a secure Enterprise File Sync and Share (EFSS) solution; BlackBerry Messenger (BBM) Enterprise, an enterprise-grade secure instant messaging solution for messaging, voice and video; BlackBerry SecuSUITE is a certified, multi-OS voice and text messaging solution; BlackBerry AtHoc, a secure networked critical event management solution; and BlackBerry unified endpoint management (UEM) solutions. It also provides BlackBerry Technology Solutions (BTS); BlackBerry Certicom, a patented elliptic curve cryptography, which provides device security, anti-counterfeiting and product authentication solutions; BlackBerry Radar offers monitoring and telematics solutions; BlackBerry Professional; and cyber security consulting services. In addition, the company is involved in the patent licensing and legacy service access fees business. 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.