Should You Buy BlackBerry Ltd. or Sierra Wireless, Inc.?

BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY) and Sierra Wireless, Inc. (TSX:SW)(NASDAQ:SWIR) have experienced impressive growth in 2017, but investors should be targeting one in particular.

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Canadian tech stocks have made quite a splash in 2017. The biggest story, of course, has been the stout performance of Shopify Inc. (TSX:SHOP)(NYSE:SHOP). The Ottawa-based e-commerce company has experienced growth of 151% in 2017 as of close on September 29.

However, today we are going to look at two stocks that have had ups and downs in 2017.

Sierra Wireless, Inc.

Sierra Wireless, Inc. (TSX:SW)(NASDAQ:SWIR) stock has increased 27.3% in 2017 as of close on September 29. The Canadian multinational specializes in manufacturing and designing wireless communications equipment. The company released its second-quarter results on August 2.

Revenue experienced growth of 11.1% to $173.5 million compared to $156.2 million in Q2 2016. Revenue from Enterprise Solutions increase 30.7% to $21.7 million. Net earnings were up to $9.7 million, or $0.30 per diluted share, compared to $6.4 million, or $0.20 per diluted share, in the second quarter of 2016. Sierra announced its global LTE-Advanced Pro cellular modules on September 12 — the first of its kind in the industry. It boasts 200% faster uplink speed over any other competitor.

Sierra Wireless closed at $26.77 on September 29 — down 0.34%. The stock reached two-year highs in June in the wake of its first-quarter results but has declined steadily since a disappointing second quarter.

BlackBerry Ltd.

Shares of BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY) have increased 50.9% in 2017. The Waterloo-based multinational has seen big gains since the arrival of John Chen as CEO. It has undergone a transformation from a leading hardware developer to offering a discount on its hardware products and moving to a primary focus on software.

BlackBerry released its fiscal 2018 second-quarter results on September 28. Software and services revenue jumped 26% to $196 million from fiscal Q2 2017. Revenue in services and software was boosted by licensing fees, which grew to $56 million from $16 million in the previous fiscal period. The company reported quarterly net income of $19 million, or $0.04 per share, compared to a loss of $372 million, or $0.71 per share, the previous year. The company has established impressive footing in the growing self-driving vehicle industry, including a recent agreement with Delphi Automotive PLC on a software operating system.

BlackBerry also won the rights to sell tools for cellphone encryption to the U.S. federal government in July. The company boasts encryption services that are used by over 20 government agencies worldwide. BlackBerry stock closed at $13.95 on September 29 — up 7.31%.

Which should you buy?

Although I like both stocks moving forward, the recent earnings from BlackBerry hold a lot of promise. The company is now projecting revenue between $920 and $950 million in fiscal 2018. Cybersecurity is a growing industry, and BlackBerry is stepping into an environment in which governments are looking to enhance protections across the board. A report from BI Intelligence has projected that there will be 10 million self-driving cars in use across major markets by 2020. BlackBerry has continued to establish itself in this industry and should benefit from its growth in the long term.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned. David Gardner owns shares of Sierra Wireless. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify, SHOPIFY INC, and Sierra Wireless. Shopify is a recommendation of Stock Advisor Canada.

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