BlackBerry Limited (NASDAQ: BBRY) and Meru Networks (NASDAQ:MERU) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Institutional and Insider Ownership

63.4% of BlackBerry Limited shares are owned by institutional investors. 22.7% of BlackBerry Limited shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares BlackBerry Limited and Meru Networks’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BlackBerry Limited $1.05 billion 5.80 $238.00 million $0.84 13.68
Meru Networks N/A N/A N/A N/A N/A

BlackBerry Limited has higher revenue and earnings than Meru Networks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BlackBerry Limited and Meru Networks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackBerry Limited 3 10 4 0 2.06
Meru Networks 0 0 0 0 N/A

BlackBerry Limited currently has a consensus price target of $9.49, suggesting a potential downside of 17.45%. Given BlackBerry Limited’s higher possible upside, research analysts plainly believe BlackBerry Limited is more favorable than Meru Networks.

Profitability

This table compares BlackBerry Limited and Meru Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackBerry Limited 49.62% 2.70% 1.78%
Meru Networks -46.15% N/A -86.56%

Summary

BlackBerry Limited beats Meru Networks on 8 of the 8 factors compared between the two stocks.

About BlackBerry Limited

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 Meru Networks

Meru Networks, Inc. (Meru) develops and markets a virtualized Wireless Local Area Network (WLAN) solution. The Company’s solution is built around its System Director Operating System, which runs on its controllers and access points. The Company offers additional products designed to deliver network management, diagnostics and security. The Company also offers support services related to its products, professional services, and training. Its products and services are sold through value added resellers, and distributors, as well as its sales force. Its System Director Operating System forms the core of its virtualized WLAN solution. It provides a family of controllers that run its System Director Operating System and work in conjunction with its access points. Its Wireless Fidelity (Wi-Fi) certified access points provide network connectivity for wireless devices. Its bring-your-own-device (BYOD) and policy management solutions are designed to automate secure guest access.

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