Critical Analysis: Genpact (NYSE:G) & BigBear.ai (NYSE:BBAI)

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

Volatility & Risk

Genpact has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.43, indicating that its stock price is 243% more volatile than the S&P 500.

Earnings and Valuation

This table compares Genpact and BigBear.ai”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genpact	$4.93 billion	1.46	$513.67 million	$3.01	13.70
BigBear.ai	$158.24 million	16.83	-$295.55 million	($1.44)	-4.99

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

Analyst Recommendations

This is a summary of recent recommendations for Genpact and BigBear.ai, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genpact	0	5	3	0	2.38
BigBear.ai	1	2	2	0	2.20

Genpact currently has a consensus target price of $52.29, suggesting a potential upside of 26.80%. BigBear.ai has a consensus target price of $6.00, suggesting a potential downside of 16.47%. Given Genpact’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Genpact is more favorable than BigBear.ai.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Genpact	10.92%	22.15%	10.61%
BigBear.ai	-269.28%	-48.11%	-15.88%

Institutional and Insider Ownership

96.0% of Genpact shares are held by institutional investors. Comparatively, 7.6% of BigBear.ai shares are held by institutional investors. 3.1% of Genpact shares are held by insiders. Comparatively, 1.1% of BigBear.ai shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Genpact beats BigBear.ai on 12 of the 14 factors compared between the two stocks.

About Genpact

Genpact Limited provides business process outsourcing and information technology services in India, rest of Asia, North and Latin America, and Europe. It operates through three segments: Financial services; Consumer and Healthcare; and High Tech and Manufacturing. The Financial Services segment offers retail customer onboarding, customer service, collections, card servicing operations, loan and payment operations, commercial loan, equipment and auto loan, mortgage origination, compliance services, reporting and monitoring, and wealth management operations support; financial crime and risk management services; and underwriting support, new business processing, policy administration, claims management, catastrophe modeling and actuarial services, as well as property and casualty claims. The Consumer and Healthcare segment provides demand generation, sensing and planning, supply chain planning and management, pricing and trade promotion management, deduction recovery management, order management, and digital commerce; and end-to-end claim lifecycle management, from claims processing and adjudication to claims recovery and payment integrity, revenue cycle management, health equity analytics, and care services. The High Tech and Manufacturing segment offers industry-specific solutions for trust and safety, advertising sales support, customer and user experience, and customer care support; and direct and indirect procurement, logistics, field, aftermarket support, and engineering services. It also provides digital operation services; data-tech-Al services; finance and accounting services, such as accounts payable, invoice-to-cash, record to report, financial planning and analysis, and enterprise risk and compliance; CFO advisory services; supply chain, and sourcing and procurement services; sales and commercial, and marketing and experience services; and environmental, social and governance services. The company was founded in 1997 and is based in Hamilton, Bermuda.

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.