Analyzing BlackBerry (NYSE:BB) and HubSpot (NYSE:HUBS)

HubSpot (NYSE:HUBS) and BlackBerry (NYSE:BB) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Earnings and Valuation

This table compares HubSpot and BlackBerry”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HubSpot	$2.39 billion	11.41	-$176.29 million	($2.65)	-202.26
BlackBerry	$853.00 million	1.75	-$130.00 million	($0.29)	-8.69

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for HubSpot and BlackBerry, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HubSpot	0	4	21	0	2.84
BlackBerry	0	6	1	1	2.38

HubSpot presently has a consensus price target of $610.79, suggesting a potential upside of 13.95%. BlackBerry has a consensus price target of $3.20, suggesting a potential upside of 26.98%. Given BlackBerry’s higher possible upside, analysts plainly believe BlackBerry is more favorable than HubSpot.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HubSpot	-1.15%	-2.33%	-1.04%
BlackBerry	-25.80%	-6.43%	-3.56%

Volatility and Risk

HubSpot has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, BlackBerry has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Institutional & Insider Ownership

90.4% of HubSpot shares are owned by institutional investors. Comparatively, 54.5% of BlackBerry shares are owned by institutional investors. 4.5% of HubSpot shares are owned by company insiders. Comparatively, 0.3% of BlackBerry shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

HubSpot beats BlackBerry on 10 of the 15 factors compared between the two stocks.

About HubSpot

HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content. It offers Operations Hub, which is designed to unify customer data, automate business processes, data cleanup, and provide customer insights and connections; and Commerce Hub, a B2B commerce suite. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success, as well as phone and/or email and chat-based support services. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.

About BlackBerry

BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers CylanceENDPOINT, an integrated endpoint security solution; CylanceGUARD, a managed detection and response solution; CylanceEDGE, an AI-powered continuous authentication zero trust network access solution; CylanceINTELLIGENCE, a contextual cyber threat intelligence service; BlackBerry Dynamics offers a development platform and secure container for mobile applications; BlackBerry Workspaces a secure Enterprise File Sync and Share (EFSS) solution; BlackBerry Messenger (BBM) Enterprise, an enterprise-grade secure instant messaging solution for messaging, voice and video; BlackBerry SecuSUITE is a certified, multi-OS voice and text messaging solution; BlackBerry AtHoc, a secure networked critical event management solution; and BlackBerry unified endpoint management (UEM) solutions. It also provides BlackBerry Technology Solutions (BTS); BlackBerry Certicom, a patented elliptic curve cryptography, which provides device security, anti-counterfeiting and product authentication solutions; BlackBerry Radar offers monitoring and telematics solutions; BlackBerry Professional; and cyber security consulting services. In addition, the company is involved in the patent licensing and legacy service access fees business. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was incorporated in 1984 and is headquartered in Waterloo, Canada.