BigBear.ai (NYSE:BBAI) and Stem (NYSE:STEM) Head-To-Head Analysis

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

Volatility & Risk

BigBear.ai has a beta of 3.45, suggesting that its share price is 245% more volatile than the S&P 500. Comparatively, Stem has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Insider and Institutional Ownership

7.6% of BigBear.ai shares are held by institutional investors. Comparatively, 61.6% of Stem shares are held by institutional investors. 0.5% of BigBear.ai shares are held by insiders. Comparatively, 10.2% of Stem shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for BigBear.ai and Stem, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	1	2	1	0	2.00
Stem	2	4	0	0	1.67

BigBear.ai currently has a consensus target price of $6.00, indicating a potential upside of 54.84%. Stem has a consensus target price of $17.60, indicating a potential upside of 56.72%. Given Stem’s higher probable upside, analysts plainly believe Stem is more favorable than BigBear.ai.

Earnings & Valuation

This table compares BigBear.ai and Stem”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	10.69	-$295.55 million	($1.42)	-2.73
Stem	$144.58 million	0.65	-$854.01 million	($13.63)	-0.82

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

Profitability

This table compares BigBear.ai and Stem’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%
Stem	62.20%	N/A	-21.71%

Summary

BigBear.ai beats Stem on 8 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 Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.