Comparing Smith Micro Software (NASDAQ:SMSI) and BigBear.ai (NYSE:BBAI)

Smith Micro Software (NASDAQ:SMSI) and BigBear.ai (NYSE:BBAI) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Institutional and Insider Ownership

20.8% of Smith Micro Software shares are held by institutional investors. Comparatively, 7.6% of BigBear.ai shares are held by institutional investors. 9.4% of Smith Micro Software shares are held by insiders. Comparatively, 2.0% of BigBear.ai shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Smith Micro Software and BigBear.ai, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Micro Software	0	0	2	0	3.00
BigBear.ai	0	2	2	0	2.50

Smith Micro Software presently has a consensus target price of $28.00, suggesting a potential upside of 998.04%. BigBear.ai has a consensus target price of $3.00, suggesting a potential upside of 89.26%. Given Smith Micro Software’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Smith Micro Software is more favorable than BigBear.ai.

Valuation & Earnings

This table compares Smith Micro Software and BigBear.ai’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Micro Software	$40.86 million	0.71	-$24.40 million	($2.96)	-1.02
BigBear.ai	$155.16 million	2.48	-$60.37 million	($0.42)	-3.77

Smith Micro Software has higher earnings, but lower revenue than BigBear.ai. BigBear.ai is trading at a lower price-to-earnings ratio than Smith Micro Software, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Smith Micro Software has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.68, meaning that its share price is 268% more volatile than the S&P 500.

Profitability

This table compares Smith Micro Software and BigBear.ai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith Micro Software	-59.70%	-13.46%	-10.91%
BigBear.ai	-38.90%	N/A	-29.60%

About Smith Micro Software

Smith Micro Software, Inc. engages in the development and sale of software to enhance the mobile experience to wireless and cable service providers in the Americas, Europe, the Middle East, and Africa. The company offers SafePath Family, SafePath IoT, SafePath Home, and SafePath Premium product suite, which provides tools to protect digital lifestyles and manage connected devices inside and outside the home; and CommSuite, a messaging platform that helps mobile service provides deliver a next-generation voicemail experience to mobile subscribers, as well as enables multi-language voice-to-text (VTT) transcription messaging. It also offers ViewSpot, a retail display management platform that provides on-screen and interactive demos to wireless carriers and other smartphone retailers; and technical support and customer services. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Pittsburgh, Pennsylvania.

About BigBear.ai

BigBear.ai Holdings, Inc. provides artificial intelligence-powered decision intelligence solutions. It offers national security, supply chain management, and digital identity and biometrics solutions. The company also provides data ingestion, data enrichment, data processing, artificial intelligence, machine learning, predictive analytics, and predictive visualization solutions and services. It serves nation defense and intelligence agencies, border protection, transportation security, manufacturing, distribution and logistics, travel, entertainment, and tourism sectors. The company is headquartered in Columbia, Maryland.