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

Insider & Institutional Ownership

59.2% of BlackBerry shares are owned by institutional investors. Comparatively, 92.0% of pdvWireless shares are owned by institutional investors. 22.7% of BlackBerry shares are owned by insiders. Comparatively, 10.9% of pdvWireless shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for BlackBerry and pdvWireless, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackBerry 3 10 4 0 2.06
pdvWireless 0 0 1 0 3.00

BlackBerry currently has a consensus price target of $9.54, suggesting a potential downside of 11.55%. pdvWireless has a consensus price target of $59.00, suggesting a potential upside of 75.07%. Given pdvWireless’ stronger consensus rating and higher possible upside, analysts plainly believe pdvWireless is more favorable than BlackBerry.

Risk and Volatility

BlackBerry has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, pdvWireless has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
BlackBerry 49.62% 2.70% 1.78%
pdvWireless -670.81% -16.24% -15.14%

Valuation & Earnings

This table compares BlackBerry and pdvWireless’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BlackBerry $1.31 billion 4.37 -$1.21 billion $0.84 12.85
pdvWireless $4.79 million 101.59 -$39.18 million ($2.60) -12.96

pdvWireless has lower revenue, but higher earnings than BlackBerry. pdvWireless 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 pdvWireless on 8 of the 13 factors compared between the two stocks.

BlackBerry Company Profile

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).

pdvWireless Company Profile

pdvWireless, Inc., formerly Pacific DataVision, Inc., is a wireless communications carrier and a provider of mobile workforce communication and location-based solutions. The Company’s solutions focus on enhancing the productivity of its customers’ field-based workers, and the efficiency of their dispatch and call center operations. The Company is deploying and operating the two-way radio networks that offer push-to-talk (PTT) communications services to primarily dispatch-centric, small and medium-sized businesses. The Company has launched its PTT networks in markets throughout the United States. The Company offers its DispatchPlus service, which combines pdvConnect, its suite of mobile communication and workforce management applications with digital network architecture and mobile devices. Developed for dispatch-centric businesses, pdvConnect enables businesses to locate and communicate with their field workers.

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