TIM Participacoes (NYSE: TSU) and BlackBerry Limited (NASDAQ:BBRY) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for TIM Participacoes and BlackBerry Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TIM Participacoes 1 1 5 0 2.57
BlackBerry Limited 2 10 4 0 2.13

TIM Participacoes currently has a consensus target price of $18.63, indicating a potential upside of 2.50%. BlackBerry Limited has a consensus target price of $9.27, indicating a potential upside of 1.15%. Given TIM Participacoes’ stronger consensus rating and higher possible upside, equities research analysts plainly believe TIM Participacoes is more favorable than BlackBerry Limited.

Profitability

This table compares TIM Participacoes and BlackBerry Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TIM Participacoes 5.07% 5.21% 2.71%
BlackBerry Limited 11.68% -1.67% -1.01%

Dividends

TIM Participacoes pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. BlackBerry Limited does not pay a dividend. TIM Participacoes pays out 12.3% of its earnings in the form of a dividend. TIM Participacoes has raised its dividend for 4 consecutive years.

Volatility & Risk

TIM Participacoes has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, BlackBerry Limited has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Valuation & Earnings

This table compares TIM Participacoes and BlackBerry Limited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TIM Participacoes $4.99 billion 1.76 $1.18 billion $0.57 31.88
BlackBerry Limited $1.14 billion 4.27 $124.00 million $0.20 45.80

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

Insider & Institutional Ownership

16.5% of TIM Participacoes shares are held by institutional investors. Comparatively, 63.4% of BlackBerry Limited shares are held by institutional investors. 22.7% of BlackBerry Limited shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

TIM Participacoes beats BlackBerry Limited on 11 of the 16 factors compared between the two stocks.

TIM Participacoes Company Profile

TIM Participacoes S.A. (TIM) is a provider of mobile telecommunication services in Brazil. The Company, through its subsidiaries in various telecommunications markets, operates mobile, fixed and long distance telephony, data transmission and ultra-broadband services. Its direct subsidiaries include TIM Celular S.A., which provides landline telephone services (commuted fixed telephonic service (STFC))-domestic long distance and international long distance voice services, personal mobile service (SMP) and multimedia communication service (multimedia service of communication (SCM)) in all Brazilian states and in the Federal District, and Intelig Telecomunicacoes Ltda., which provides STFC-local voices services and SCM services in all Brazilian states and in the Federal District. Its consumer plans include prepaid plans, post-paid plans and controle plans. It offers value-added services, including short message services or text messaging, multimedia messaging services and push-mail.

BlackBerry Limited 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).

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