Head-To-Head Review: United States Cellular (USM) versus BlackBerry (BB)
BlackBerry (NYSE: BB) and United States Cellular (NYSE:USM) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Earnings & Valuation
This table compares BlackBerry and United States Cellular’s revenue, earnings per share 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|
|United States Cellular||$3.94 billion||0.82||$48.00 million||($3.13)||-12.08|
This table compares BlackBerry and United States Cellular’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United States Cellular||-6.93%||0.94%||0.49%|
Institutional and Insider Ownership
59.2% of BlackBerry shares are owned by institutional investors. Comparatively, 14.7% of United States Cellular shares are owned by institutional investors. 22.7% of BlackBerry shares are owned by company insiders. Comparatively, 1.6% of United States Cellular shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and price targets for BlackBerry and United States Cellular, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United States Cellular||1||2||0||0||1.67|
BlackBerry presently has a consensus price target of $9.54, suggesting a potential downside of 11.55%. United States Cellular has a consensus price target of $35.50, suggesting a potential downside of 6.11%. Given United States Cellular’s higher probable upside, analysts plainly believe United States Cellular is more favorable than BlackBerry.
Volatility & Risk
BlackBerry has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, United States Cellular has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.
BlackBerry beats United States Cellular on 11 of the 14 factors compared between the two stocks.
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 United States Cellular
United States Cellular Corporation (U.S. Cellular) is a provider of wireless telecommunication services. The Company’s wireless operating markets are in the United States. U.S. Cellular provides service to postpaid and prepaid customers from a range of demographic segments. The Company focuses on retail consumers, government and small-to-mid-size business customers in industries, such as construction, retail, professional services and real estate. The Company offers a range of wireless devices, such as handsets, modems, mobile hotspots, home phones and tablets for use by its customers. U.S. Cellular offers wireless devices that are compatible with fourth generation long term evolution (4G LTE) and third generation (3G) networks. U.S. Cellular offers a range of accessories, such as carrying cases, hands-free devices, batteries, battery chargers, and memory cards to related consumer electronics, such as headphones, speakers and Bluetooth keyboards.
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