BlackBerry or HIVE Stock? Here’s the Better Buy

BlackBerry and HIVE stock have been two of the most volatile Canadian stocks lately. Here’s which stock is the better long-term investment.

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BlackBerry (TSX:BB)(NYSE:BB) and HIVE Blockchain Technologies (TSXV:HIVE) are among two of the most popular Canadian stocks. Both BlackBerry and HIVE are revolutionary tech stocks that could offer investors major growth potential over the next few decades.

There’s no secret that highly revolutionary tech stocks have the potential to earn investors huge returns. However, it’s also well known that these companies can be highly risky as well.

So, it’s crucial that we do all our homework and research both stocks thoroughly before making any investment decision.

For now, though, here’s the better stock to buy today between BlackBerry and HIVE Blockchain Technologies.

BlackBerry stock

BlackBerry is a promising tech company. It’s well known for its software security — an industry that is growing by the day. The long-term growth potential BlackBerry stock has is arguably a better opportunity for investors than HIVE stock.

With 5G technology and the rise of the Internet of Things, software security demand will continue to grow massively. Plus, BlackBerry is well known to have some of the best software for self-driving cars.

The company has a tonne of potential long term. The issue with BlackBerry is its valuation today.

BlackBerry has gained a lot of attention and popularity on the internet and became way overhyped. The resulting rally sent the stock to multiples of what any analysts had it valued at.

Since then, BlackBerry stock has slowly been losing value, as it comes back down towards its fair value. For now, though, the stock is still considerably overvalued.

However, because of its long-term potential, I wouldn’t write it off forever. It’s worth keeping on your watchlist for the future.

HIVE stock

HIVE would be the better stock to buy today, but that’s mainly due to BlackBerry’s massive valuation. It’s a stock that most investors will want to avoid or only invest a tiny portion of your portfolio in. HIVE is a cryptocurrency miner, making its shares extremely volatile.

While it gets a lot of attention for the incredible 1,000% gain it’s put up over the last four months, the stock is still extremely risky. It not only relies on the price of the cryptocurrencies it mines to keep on rising but also the company’s ability to stay competitive in the mining space.

And because it’s highly volatile, if investors aren’t careful, they could lose a tonne of their hard-earned money in a short period of time. In the five trading days from February 18 to February 25, HIVE stock lost roughly 30% of its value.

It’s not that it’s a bad stock. It’s just a lot higher volatility and risk than many investors will want. There are stocks with much lower volatility if you’re looking for exposure to Bitcoin.

Bottom line

BlackBerry is still considerably overvalued today, making the stock uninvestable. However, HIVE is valued more fairly, but it’s leveraged to an already risky asset in Bitcoin.

Therefore, due to valuations, HIVE is the better stock to buy today. If you’re going to buy HIVE, though, be sure you’re ready for the ups and downs, as it’s one of the highest-risk, highest-reward stocks in Canada.

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 Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry and BlackBerry.

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