T-Mobile Us (PCS) vs. BlackBerry (BB) Critical Survey

T-Mobile Us (NYSE: PCS) and BlackBerry (NYSE:BB) are both mid-cap telecommunications services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for T-Mobile Us and BlackBerry, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
T-Mobile Us 0 2 6 0 2.75
BlackBerry 3 9 4 0 2.06

T-Mobile Us currently has a consensus target price of $70.13, indicating a potential upside of 492.27%. BlackBerry has a consensus target price of $9.91, indicating a potential downside of 14.55%. Given T-Mobile Us’ stronger consensus rating and higher possible upside, research analysts clearly believe T-Mobile Us is more favorable than BlackBerry.

Insider & Institutional Ownership

59.1% of BlackBerry shares are held by institutional investors. 22.7% of BlackBerry shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares T-Mobile Us and BlackBerry’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
T-Mobile Us N/A N/A N/A $0.24 49.33
BlackBerry $1.31 billion 4.75 -$1.21 billion $0.54 21.48

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

Profitability

This table compares T-Mobile Us and BlackBerry’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
T-Mobile Us N/A N/A N/A
BlackBerry 37.36% 3.70% 2.44%

Summary

BlackBerry beats T-Mobile Us on 7 of the 11 factors compared between the two stocks.

About T-Mobile Us

MetroPCS Communications, Inc. (MetroPCS Communications) is a facilities-based wireless broadband mobile communications provider in the United States, including the Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco, and Tampa/Sarasota metropolitan areas. It offers wireless broadband mobile services under the MetroPCS brand in selected metropolitan areas in the United States. It provides a variety of wireless broadband mobile communications services to its customers on a no long-term contract, paid-in-advance basis. As of December 31, 2011, it had over 9.3 million customers. All of its services are provided through wholly owned subsidiaries of MetroPCS Wireless, Inc., an indirect wholly owned subsidiary of MetroPCS Communications. In January 2011, it introduced long term evolution (4G LTE) service plans.

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).

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