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How Does BlackBerry Compare to Its Peers?

Gabriel Kane

US Equity Market Update, September 25: BlackBerry and Its Peers

(Continued from Prior Part)

BlackBerry and its peers

In this article, we’ll compare BlackBerry’s (BBRY) 2Q16 results to its peers.

  • The gross profit margins of BlackBerry (BBRY), Nokia (NOK), SAP SE (SAP), International Business Machines (IBM), and MobileIron (MOBL) are 37.75%, 49.02%, 67.67%, 49.92%, and 81.10%, respectively.
  • EPS (earnings per share) for BlackBerry (BBRY), Nokia (NOK), SAP SE (SAP), and International Business Machines (IBM) are $0.19, $0.10, $0.62, and $3.56, respectively.

Now let’s take a look at BlackBerry’s 2Q16 balance sheet as it compares to its peers.

  • The current ratios of BlackBerry (BBRY), Nokia (NOK), SAP SE (SAP), International Business Machines (IBM), and MobileIron (MOBL) are 3.95, 1.92, 0.99, 1.27, and 2.17, respectively.

Following is a comparison of BlackBerry’s valuation to its peers.

  • The PB (price-to-book) value ratios of BlackBerry (BBRY), Nokia (NOK), SAP SE (SAP), International Business Machines (IBM), and MobileIron (MOBL) are 0.98x, 2.37x, 3.26x, 10.44x, and 2.82x, respectively.

According to the above findings, Blackberry’s competitors have outperformed BlackBerry based on gross profit margin, EPS, and PB. Based on current ratio, BlackBerry is way ahead of its competitors.

ETFs that invest in BlackBerry

The First Trust NASDAQ CEA Smartphone Fund (FONE) invests 2.82% of its holdings in BlackBerry. The ETF tracks a tiered equal-weighted index of companies classified as smartphone companies by the Consumer Electronics Association.

The PowerShares FTSE RAFI Developed Markets ex-US ETF (PXF) invests 0.13% of its holdings in BlackBerry. The ETF tracks a fundamentally weighted index of 1,000 of the biggest companies in developed markets outside the United States based on fundamental measures.

The iShares North American Tech ETF (IGM) invests 0.11% of its holdings in BlackBerry. The ETF tracks a market-cap-weighted index of US and Canadian technology companies.

Comparing BlackBerry to its ETFs

Following is how BlackBerry’s price movement compares to its ETFs:

  • The year-to-date price movements of BlackBerry (BBRY), FONE, PXF, and IGM are -40.89%, -10.36%, -8.23%, and 0.14%, respectively.

Now let’s see how BlackBerry’s valuation compares to its ETFs:

  • The PB value ratios of BlackBerry (BBRY), FONE, PXF, and IGM, are 0.98x, 1.88x, 1.32x, and 4.28x, respectively.

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