Contrasting BigBear.ai (NYSE:BBAI) & ServiceNow (NYSE:NOW)

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

Insider and Institutional 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 insiders. Comparatively, 0.3% of ServiceNow shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

BigBear.ai has a beta of 3.27, indicating that its stock price is 227% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BigBear.ai and ServiceNow, as reported by MarketBeat.com.

	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 price target of $5.50, suggesting a potential upside of 30.98%. ServiceNow has a consensus price target of $141.85, suggesting a potential upside of 26.14%. Given BigBear.ai’s higher probable upside, analysts clearly believe BigBear.ai is more favorable than ServiceNow.

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%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigBear.ai	$127.67 million	15.75	-$293.91 million	($0.87)	-4.83
ServiceNow	$13.28 billion	8.73	$1.75 billion	$1.68	66.94

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.

Summary

ServiceNow beats BigBear.ai on 11 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 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.