Fabrinet (FN) versus BlackBerry (BB) Financial Survey

Fabrinet (NYSE: FN) and BlackBerry (NYSE:BB) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current ratings for Fabrinet and BlackBerry, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fabrinet 0 2 3 1 2.83
BlackBerry 3 9 4 0 2.06

Fabrinet currently has a consensus price target of $40.67, suggesting a potential upside of 9.85%. BlackBerry has a consensus price target of $10.73, suggesting a potential downside of 12.81%. Given Fabrinet’s stronger consensus rating and higher possible upside, research analysts clearly believe Fabrinet is more favorable than BlackBerry.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fabrinet $1.42 billion 0.96 $97.11 million $2.57 14.40
BlackBerry $932.00 million 7.09 $405.00 million $0.05 246.20

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

Institutional & Insider Ownership

97.7% of Fabrinet shares are held by institutional investors. Comparatively, 57.6% of BlackBerry shares are held by institutional investors. 3.3% of Fabrinet shares are held by insiders. Comparatively, 22.7% of BlackBerry shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Fabrinet 6.36% 12.48% 8.52%
BlackBerry 43.46% 3.70% 2.46%

Risk & Volatility

Fabrinet has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, BlackBerry has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Summary

Fabrinet beats BlackBerry on 8 of the 15 factors compared between the two stocks.

Fabrinet Company Profile

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, medical devices, and sensors. It offers a range of optical and electro-mechanical capabilities across the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, packaging, integration, final assembly, and test. The company's products comprise switching products, such as reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths and speeds, and over various distances; tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as for Infiniband, Ethernet, fiber channel, and optical backplane connectivity. It also offers solid state, diode-pumped, gas, and fiber lasers used across semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and sensors, such as differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. In addition, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, and laser components and substrates, as well as other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It has operations in North America, the Asia-Pacific, and Europe. The company was incorporated in 1999 and is based in George Town, the Cayman Islands.

BlackBerry Company Profile

BlackBerry Limited operates as an enterprise software and services company focused on securing and managing endpoints in the Internet of Things. It offers BlackBerry Enterprise Mobility Suite, which combines and integrates mobile security, management, productivity, and collaboration solutions, such as BlackBerry UEM, BlackBerry Dynamics, and BlackBerry Workspaces; BlackBerry AtHoc, a secure and networked crisis communications solution; SecuSUITE for Government, a voice encryption software solution; BlackBerry Enterprise Consulting and BlackBerry Cybersecurity Consulting; and BBM Enterprise, an enterprise-grade secure instant messaging solution, as well as Communications Platform as a Service. The company also provides BlackBerry QNX, a software for automotive electronics; BlackBerry Jarvis, a cloud-based static binary code-scanning solution; Certicom that offers software components and end-to-end security solutions targeted at bandwidth and resource-constrained applications; Paratek, which offers adaptive radio frequency antenna tuning technology; BlackBerry Radar, an asset tracking and telematics product. In addition, it offers intellectual property and licensing; mobility licensing; other licensing programs; and develops legacy BlackBerry 10 platform, and delivers BlackBerry productivity applications to Android smartphone. Further, the company engages in the development and licensing of secure device software and the outsourcing to partners of design, manufacturing, sales, and customer support for BlackBerry-branded handsets; and provision of Android smartphones, smartphone accessories, and non-warranty repair services. Additionally, it is involved in the operations related to subscribers using mobile devices with its legacy BlackBerry 7 and prior operating systems. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was founded in 1984 and is headquartered in Waterloo, Canada.

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