BigBear.ai (NYSE:BBAI – Get Free Report) and ServiceNow (NYSE:NOW – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Institutional and Insider Ownership
7.6% of BigBear.ai shares are owned by institutional investors. Comparatively, 87.2% of ServiceNow shares are owned by institutional investors. 0.6% of BigBear.ai shares are owned by company insiders. Comparatively, 0.3% of ServiceNow shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
BigBear.ai has a beta of 3.27, meaning that its stock price is 227% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BigBear.ai | 1 | 1 | 1 | 0 | 2.00 |
| ServiceNow | 1 | 5 | 35 | 2 | 2.88 |
BigBear.ai currently has a consensus target price of $5.50, indicating a potential upside of 8.06%. ServiceNow has a consensus target price of $141.85, indicating a potential upside of 11.17%. Given ServiceNow’s stronger consensus rating and higher probable upside, analysts clearly believe ServiceNow is more favorable than BigBear.ai.
Earnings & Valuation
This table compares BigBear.ai and ServiceNow”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BigBear.ai | $127.67 million | 19.09 | -$293.91 million | ($0.87) | -5.85 |
| ServiceNow | $13.28 billion | 9.91 | $1.75 billion | $1.68 | 75.95 |
ServiceNow has higher revenue and earnings than BigBear.ai. BigBear.ai is trading at a lower price-to-earnings ratio than ServiceNow, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BigBear.ai and ServiceNow’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BigBear.ai | -226.69% | -16.02% | -11.15% |
| ServiceNow | 12.59% | 18.16% | 9.04% |
Summary
ServiceNow beats BigBear.ai on 11 of the 14 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 ServiceNow
ServiceNow, Inc. provides end to-end intelligent workflow automation platform solutions for digital businesses in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform for end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, and collaboration and development tools. It also provides asset management, cloud observability, integrated risk management; information technology (IT) service management applications; IT service management product suite for enterprise's employees, customers, and partners; strategic portfolio management product suite; IT operations management product that connects a customer's physical and cloud-based IT infrastructure; IT asset management; and security operations that connects with internal and third party. In addition, the company offers integrated risk management product to manage risk and resilience; environmental, social and governance management product; human resources, legal, and workplace service delivery products; customer service management product; and field service management applications. Further, the company provides app engine product; automation engine; platform privacy and security product; and source-to-pay operations. It serves to government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products through service providers and resale partners. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.
Receive News & Ratings for BigBear.ai Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BigBear.ai and related companies with MarketBeat.com's FREE daily email newsletter.
