BlackBerry (NASDAQ: RIMM) and ORBCOMM (NASDAQ:ORBC) are both telecommunications services companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackBerry 0 0 0 0 N/A
ORBCOMM 0 0 6 0 3.00

ORBCOMM has a consensus target price of $13.30, suggesting a potential upside of 28.13%. Given ORBCOMM’s higher possible upside, analysts plainly believe ORBCOMM is more favorable than BlackBerry.

Profitability

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

Net Margins Return on Equity Return on Assets
BlackBerry 285.53% 112.26% 73.92%
ORBCOMM -15.52% -6.16% -3.25%

Earnings & Valuation

This table compares BlackBerry and ORBCOMM’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BlackBerry N/A N/A N/A N/A N/A
ORBCOMM $202.00 million 3.78 $36.94 million ($0.45) -23.07

ORBCOMM has higher revenue and earnings than BlackBerry.

Institutional and Insider Ownership

78.5% of ORBCOMM shares are owned by institutional investors. 9.5% of ORBCOMM shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

ORBCOMM beats BlackBerry on 5 of the 8 factors compared between the two stocks.

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).

About ORBCOMM

ORBCOMM Inc. is a provider of Internet of Things (IoT) solutions, including network connectivity, devices, device management and Web reporting applications. The Company’s IoT products and services are designed to track, monitor and manage security for a range of assets, such as trailers, trucks, rail cars, sea containers, generators, fluid tanks, marine vessels, diesel or electric powered generators (gensets), oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters, in industries for transportation and supply chain, heavy equipment, fixed asset monitoring, maritime and government. It also provides Automatic Identification System (AIS) data services to assist in vessel navigation and to manage maritime safety for government and commercial customers across the world. It provides its services using various network platforms, including its own constellation of low-Earth orbit (LEO) satellites.

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