BigBear.ai (NYSE:BBAI) vs. Leidos (NYSE:LDOS) Critical Review

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

Earnings and Valuation

This table compares BigBear.ai and Leidos”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	11.86	-$295.55 million	($1.44)	-3.52
Leidos	$16.66 billion	1.39	$1.25 billion	$10.58	17.10

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BigBear.ai	-269.28%	-48.11%	-15.88%
Leidos	8.22%	33.57%	11.45%

Analyst Ratings

This is a breakdown of current ratings and price targets for BigBear.ai and Leidos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	0	2	2	0	2.50
Leidos	0	7	7	1	2.60

BigBear.ai presently has a consensus target price of $6.00, suggesting a potential upside of 18.48%. Leidos has a consensus target price of $179.46, suggesting a potential downside of 0.79%. Given BigBear.ai’s higher possible upside, analysts plainly believe BigBear.ai is more favorable than Leidos.

Insider and Institutional Ownership

7.6% of BigBear.ai shares are held by institutional investors. Comparatively, 76.1% of Leidos shares are held by institutional investors. 1.1% of BigBear.ai shares are held by insiders. Comparatively, 1.0% of Leidos shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

BigBear.ai has a beta of 3.44, meaning that its stock price is 244% more volatile than the S&P 500. Comparatively, Leidos has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Summary

Leidos 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 Leidos

Leidos Holdings, Inc., together with its subsidiaries, provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally. The company operates through Defense Solutions, Civil, and Health segments. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S. Intelligence Community, the Department of Defense, the space development agency, the National Aeronautics and Space Administration, defense information systems agency, military services, and government agencies of U.S. allies abroad, as well as other federal and commercial customers in the national security industry. The solutions include technology, large-scale systems, command and control platforms, data analytics, logistics, and cybersecurity solutions, as well as intelligence analysis and operations support services to critical missions. The Civil segment provides systems integration services to air navigation service providers, including the federal aviation administration, the En route automation modernization, advanced technology oceanic procedure, time based flow management, terminal flight data management, geo-7, and future flight services, as well as enterprise-information display systems; and security detection services. It also offers information technology (IT) solutions in cloud computing, mobility, application modernization, DevOps, data center, network modernization, asset management, help desk operations, and digital workplace enablement; and environment, energy, and infrastructure services. The Health segment offers solutions to federal and commercial customers responsible for health and well-being of people, include health information management, managed health, digital modernization, and life sciences research and development services. Leidos Holdings, Inc. was founded in 1969 and is headquartered in Reston, Virginia.