CDW (NASDAQ:CDW – Get Free Report) and BigBear.ai (NYSE:BBAI – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
93.2% of CDW shares are owned by institutional investors. Comparatively, 7.6% of BigBear.ai shares are owned by institutional investors. 0.8% of CDW shares are owned by company insiders. Comparatively, 0.6% of BigBear.ai shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares CDW and BigBear.ai”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CDW | $22.42 billion | 0.66 | $1.07 billion | $8.22 | 14.13 |
| BigBear.ai | $127.67 million | 18.63 | -$293.91 million | ($0.87) | -5.71 |
CDW has higher revenue and earnings than BigBear.ai. BigBear.ai is trading at a lower price-to-earnings ratio than CDW, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for CDW and BigBear.ai, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CDW | 1 | 3 | 4 | 1 | 2.56 |
| BigBear.ai | 1 | 1 | 1 | 0 | 2.00 |
CDW presently has a consensus price target of $140.63, suggesting a potential upside of 21.06%. BigBear.ai has a consensus price target of $5.50, suggesting a potential upside of 10.78%. Given CDW’s stronger consensus rating and higher probable upside, equities analysts clearly believe CDW is more favorable than BigBear.ai.
Risk and Volatility
CDW has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.25, meaning that its stock price is 225% more volatile than the S&P 500.
Profitability
This table compares CDW and BigBear.ai’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CDW | 4.70% | 49.67% | 8.02% |
| BigBear.ai | -226.69% | -16.02% | -11.15% |
Summary
CDW beats BigBear.ai on 13 of the 15 factors compared between the two stocks.
About CDW
CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.
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.
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