Contrasting AvidXchange (NASDAQ:AVDX) & BigBear.ai (NYSE:BBAI)

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

Insider & Institutional Ownership

80.6% of AvidXchange shares are owned by institutional investors. Comparatively, 7.6% of BigBear.ai shares are owned by institutional investors. 10.4% of AvidXchange shares are owned by company insiders. Comparatively, 1.4% of BigBear.ai shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares AvidXchange and BigBear.ai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AvidXchange	-3.18%	-0.23%	-0.07%
BigBear.ai	-104.53%	-295.34%	-23.70%

Earnings & Valuation

This table compares AvidXchange and BigBear.ai”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AvidXchange	$380.72 million	5.46	-$47.33 million	($0.06)	-166.67
BigBear.ai	$154.97 million	2.80	-$60.37 million	($0.91)	-1.91

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

Risk and Volatility

AvidXchange has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, BigBear.ai has a beta of 3.46, indicating that its share price is 246% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for AvidXchange and BigBear.ai, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvidXchange	2	6	6	0	2.29
BigBear.ai	0	1	2	0	2.67

AvidXchange currently has a consensus target price of $11.11, suggesting a potential upside of 11.07%. BigBear.ai has a consensus target price of $3.25, suggesting a potential upside of 87.32%. Given BigBear.ai’s stronger consensus rating and higher possible upside, analysts clearly believe BigBear.ai is more favorable than AvidXchange.

Summary

AvidXchange beats BigBear.ai on 10 of the 13 factors compared between the two stocks.

About AvidXchange

AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions. The company serves real estate, community association management, construction, financial services, healthcare facilities, social services, education, hospitality, and media sectors through direct salesforces; strategic channel partnerships; and software and technology business partners. AvidXchange Holdings, Inc. was incorporated in 2000 and is headquartered in Charlotte, North Carolina.

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.