Grid Dynamics (NASDAQ:GDYN) & BigBear.ai (NYSE:BBAI) Head-To-Head Contrast

BigBear.ai (NYSE:BBAI) and Grid Dynamics (NASDAQ:GDYN) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares BigBear.ai and Grid Dynamics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigBear.ai	$158.24 million	16.59	-$295.55 million	($1.42)	-4.24
Grid Dynamics	$350.57 million	2.00	$4.04 million	$0.15	55.20

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

Risk & Volatility

BigBear.ai has a beta of 3.46, meaning that its share price is 246% more volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares BigBear.ai and Grid Dynamics’ 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%
Grid Dynamics	3.42%	1.74%	1.52%

Insider and Institutional Ownership

7.6% of BigBear.ai shares are held by institutional investors. Comparatively, 71.2% of Grid Dynamics shares are held by institutional investors. 0.5% of BigBear.ai shares are held by company insiders. Comparatively, 6.5% of Grid Dynamics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for BigBear.ai and Grid Dynamics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	1	2	1	0	2.00
Grid Dynamics	0	2	3	0	2.60

BigBear.ai currently has a consensus price target of $6.00, indicating a potential downside of 0.25%. Grid Dynamics has a consensus price target of $11.33, indicating a potential upside of 36.88%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, analysts clearly believe Grid Dynamics is more favorable than BigBear.ai.

Summary

Grid Dynamics beats BigBear.ai on 12 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 Grid Dynamics

Grid Dynamics Holdings, Inc., together with its subsidiaries, provides technology consulting, platform and product engineering, and analytics services in North America, Europe, and internationally. It offers cloud platform and product engineering services, such as architecting, designing, and building scalable and secure cloud-based platforms and business applications; and AI/machine learning and data platform engineering services that build platforms to facilitate batch and streaming data ingestion, quality governance, orchestration, semantic modeling, observability, and analysis at scale. The company provides digital engagement services, including digital ecosystem design and implementation; and supply chain, Internet of Thing, and advanced manufacturing, which focuses on transforming traditional operations into smart and connected ecosystems. It serves customers that operate in the tech, media, telecommunications, retail, consumer packaged goods, manufacturing, and finance industries. The company was formerly known as ChaSerg Technology Acquisition Corp. and changed its name to Grid Dynamics Holdings, Inc. Grid Dynamics Holdings, Inc. was founded in 2006 and is headquartered in San Ramon, California.