BlackBerry (NASDAQ: RIMM) and Sprint Corporation (NYSE:S) are both telecommunications services companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitabiliy and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
BlackBerry 285.53% 112.26% 73.92%
Sprint Corporation -2.08% -3.66% -0.84%

Institutional & Insider Ownership

14.4% of Sprint Corporation shares are owned by institutional investors. 0.2% of Sprint Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares BlackBerry and Sprint Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BlackBerry N/A N/A N/A N/A N/A
Sprint Corporation $33.49 billion 1.00 $11.31 billion ($0.18) -46.66

Sprint Corporation has higher revenue and earnings than BlackBerry.

Analyst Recommendations

This is a summary of recent ratings and target prices for BlackBerry and Sprint Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackBerry 0 0 0 0 N/A
Sprint Corporation 6 10 3 0 1.84

Sprint Corporation has a consensus price target of $9.98, indicating a potential upside of 18.82%. Given Sprint Corporation’s higher probable upside, analysts plainly believe Sprint Corporation is more favorable than BlackBerry.

Summary

Sprint Corporation beats BlackBerry on 5 of the 8 factors compared between the two stocks.

About BlackBerry

BlackBerry Limited (BlackBerry) provides mobile communications solutions. The Company is engaged in the sale of smartphones and enterprise software and services. The Company’s products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging. It is engaged in providing enterprise mobility management (EMM) and mobile security, and offers a portfolio of enterprise software solutions and services that can be deployed across a range of ecosystems and devices, including BlackBerry Enterprise Service (BES) 12 and Good Platforms, BES12 Cloud, enterprise file-sync-and-share (EFSS), SecuSUITE for Enterprise, Enhanced subscriber identity module (SIM)-Based Licensing (ESBL), WorkLife by BlackBerry solution and Professional Cybersecurity Services. The BlackBerry Technology Solutions business unit consists of five units: QNX, Certicom, Paratek, the BlackBerry IoT Platform and Intellectual Property and Patent Licensing (IPPL).

About Sprint Corporation

Sprint Corporation (Sprint) is a holding company. The Company, along with its subsidiaries, is a communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of consumers, businesses, government subscribers and resellers. It operates through two segments: Wireless and Wireline. The Company offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale basis. The Wireline segment provides voice, data and Internet Protocol (IP) communication services to its Wireless segment. The Company offers wireless and wireline services to subscribers in approximately 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless on its wireless networks utilizing various technologies.

Receive News & Ratings for BlackBerry Ltd Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BlackBerry Ltd and related companies with MarketBeat.com's FREE daily email newsletter.