Reviewing BigBear.ai (NYSE:BBAI) & Vertiv (NYSE:VRT)

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

Valuation and Earnings

This table compares BigBear.ai and Vertiv”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigBear.ai	$158.24 million	14.98	-$295.55 million	($1.42)	-3.82
Vertiv	$8.01 billion	7.15	$495.80 million	$2.65	56.51

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BigBear.ai	-274.70%	-26.11%	-12.37%
Vertiv	10.67%	50.82%	14.98%

Insider and Institutional Ownership

7.6% of BigBear.ai shares are owned by institutional investors. Comparatively, 89.9% of Vertiv shares are owned by institutional investors. 0.5% of BigBear.ai shares are owned by insiders. Comparatively, 5.0% of Vertiv shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for BigBear.ai and Vertiv, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	1	2	2	0	2.20
Vertiv	1	6	20	2	2.79

BigBear.ai presently has a consensus target price of $6.33, suggesting a potential upside of 16.64%. Vertiv has a consensus target price of $180.48, suggesting a potential upside of 20.51%. Given Vertiv’s stronger consensus rating and higher probable upside, analysts plainly believe Vertiv is more favorable than BigBear.ai.

Volatility and Risk

BigBear.ai has a beta of 3.44, suggesting that its stock price is 244% more volatile than the S&P 500. Comparatively, Vertiv has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500.

Summary

Vertiv beats BigBear.ai on 13 of the 15 factors compared between the two stocks.

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.

About Vertiv

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.