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BlackBerry Limited (NYSE: BB) shares fell by more than -10.12% this year and recently increased 1.21% or $ 0.12 to settle at 10.04 $. Gold Fields Limited (NYSE: GFI), by contrast, is down -15.12% from the beginning of the year to 9/7/2018. It is currently trading at $ 3.65 and has returned 2.24% over the last week.
BlackBerry Limited (NYSE: BB) and Gold Fields Limited (NYSE: GFI) are the two most active shares in the communications equipment industry. . The market is clearly enthusiastic about these two actions, but what is the best investment? To answer this question, we will compare the two companies according to their growth, their profitability, their risk, their returns, their valuation, the recommendations of the badysts and the internal tendencies
Profitability and Returns
valuable, and it can even be dangerous for shareholders if companies overinvest in unprofitable projects in pursuit of this growth. We will use EBITDA margin and return on invested capital (ROCE), which account for differences in capital structure, as a measure of profitability and performance. BlackBerry Limited (BB) has an EBITDA margin of 62.55%. This suggests that the underlying BB is more profitable BB's ROI is 10.60% while GFI has a ROI of 4.80%. The interpretation is that BB's business generates a higher return on investment than that of GFI.
Cash Flow
Profits do not always accurately reflect the amount of money that a company brings. BB's free cash flow ("FCF") shares for the last twelve months was -0.03. Comparatively, GFI's free cash flow per share was +2.28. In terms of percentage of sales, BB's free cash flow was -0% while GFI converted 67.86% of its revenue into cash flow. This means that for a given level of sales, GFI is able to generate more free cash flow for investors.
Liquidity and Financial Risk
The liquidity and leverage ratios provide insight into the financial health of a business. determine the likelihood that the business can continue to operate as an operating business. BB has a current ratio of 6.50 compared to 1.30 for GFI. This means that BB can more easily cover its most immediate liabilities over the next twelve months. The debt ratio of BB is 0.00 versus a D / E of 0.54 for GFI. GFI is therefore the most solvent of the two companies and has a lower financial risk.
Valuation
BB trades at a forward P / E of 67.38, a P / B of 2.27, and a P / S of 5.99, compared to a P / E of 13, 88, a P / B of 0.91, and a P / S of 1.04 for GFI. BB is the most expensive of the two stocks in terms of earnings, book value and sales. Since profits are the most important for investors, badysts tend to put more weight on the price / earnings ratio.
Targets and opinions of badysts
. As Warren Buffet has said, "the price is what you pay, the value is what you get". BB is currently valued at a price of -12.08% at its one-year price target of 11.42. Comparatively, GFI is -16.86% compared to its price target of 4.39. This suggests that GFI is the best investment over the next year
Risk and Volatility
Beta is a metric that investors frequently use to badyze the systematic risk of an action. A beta greater than 1 implies a volatility higher than the market average. Conversely, a security with a beta lower than 1 is considered less risky than the overall market. BB has a beta of 1.26 and the beta of GFI is -1.02. GFI's shares are therefore the least volatile of the two shares
Insider Activity and Investor Sentiment
Comparing the number of shares sold short to float is a method that badysts often use to get an idea of investor sentiment BB has a short ratio of 10.13 compared to a short interest of 1.95 for GFI. This implies that the market is currently less bearish on the outlook for GFI.
Abstract
Gold Fields Limited (NYSE: GFI) beats BlackBerry Limited (NYSE: BB) out of a total of 9 of the 14 factors versus the two stocks. GFI is more profitable and has a higher cash conversion rate. In terms of valuation, GFI is the least expensive of the two values in terms of profit, book value and turnover, GFI being more undervalued compared to its target price. Finally, GFI has better sentiment signals based on short-term interest.
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