Reviewing BlackBerry (BB) and Workiva (WK)

BlackBerry (NYSE:BB) and Workiva (NYSE:WK) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

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This is a breakdown of current ratings and price targets for BlackBerry and Workiva, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackBerry 1 5 1 0 2.00
Workiva 1 2 4 0 2.43

BlackBerry presently has a consensus price target of $10.50, suggesting a potential upside of 20.69%. Workiva has a consensus price target of $39.20, suggesting a potential downside of 9.49%. Given BlackBerry’s higher possible upside, analysts plainly believe BlackBerry is more favorable than Workiva.

Profitability

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

Net Margins Return on Equity Return on Assets
BlackBerry 3.63% 0.98% 0.65%
Workiva -24.17% N/A -26.25%

Insider and Institutional Ownership

52.8% of BlackBerry shares are held by institutional investors. Comparatively, 43.9% of Workiva shares are held by institutional investors. 22.7% of BlackBerry shares are held by insiders. Comparatively, 29.9% of Workiva shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

BlackBerry has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500. Comparatively, Workiva has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Valuation and Earnings

This table compares BlackBerry and Workiva’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BlackBerry $932.00 million 5.11 $405.00 million $0.05 174.00
Workiva $207.87 million 9.14 -$44.42 million ($1.07) -40.48

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

Summary

BlackBerry beats Workiva on 10 of the 14 factors compared between the two stocks.

BlackBerry Company Profile

BlackBerry Limited operates as an enterprise software and services company focused on securing and managing endpoints in the Internet of Things. It offers BlackBerry Enterprise Mobility Suite, which combines and integrates mobile security, management, productivity, and collaboration solutions, such as BlackBerry UEM, BlackBerry Dynamics, and BlackBerry Workspaces; BlackBerry AtHoc, a secure and networked crisis communications solution; SecuSUITE for Government, a voice encryption software solution; BlackBerry Enterprise Consulting and BlackBerry Cybersecurity Consulting; and BBM Enterprise, an enterprise-grade secure instant messaging solution, as well as Communications Platform as a Service. The company also provides BlackBerry QNX, a software for automotive electronics; BlackBerry Jarvis, a cloud-based static binary code-scanning solution; Certicom that offers software components and end-to-end security solutions targeted at bandwidth and resource-constrained applications; Paratek, which offers adaptive radio frequency antenna tuning technology; BlackBerry Radar, an asset tracking and telematics product. In addition, it offers intellectual property and licensing; mobility licensing; other licensing programs; and develops legacy BlackBerry 10 platform, and delivers BlackBerry productivity applications to Android smartphone. Further, the company engages in the development and licensing of secure device software and the outsourcing to partners of design, manufacturing, sales, and customer support for BlackBerry-branded handsets; and provision of Android smartphones, smartphone accessories, and non-warranty repair services. Additionally, it is involved in the operations related to subscribers using mobile devices with its legacy BlackBerry 7 and prior operating systems. 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.

Workiva Company Profile

Workiva Inc. operates as a cloud provider of connected data, reporting, and compliance solutions for enterprises and government agencies worldwide. The company provides Wdesk, a cloud platform that modernizes how customers work with business data at thousands of organizations; and Wdata, which centralizes financial and nonfinancial data from diverse sources into a cloud solution. It also offers consulting, training, customer support, and education services, as well as CPE credits; and operates Wdesk community, an online forum. The company was founded in 2008 and is headquartered in Ames, Iowa.

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