Head-To-Head Contrast: Vertiv (NYSE:VRT) and BigBear.ai (NYSE:BBAI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vertiv	10.67%	50.82%	14.98%
BigBear.ai	-274.70%	-26.11%	-12.37%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertiv	1	6	20	2	2.79
BigBear.ai	1	2	2	0	2.20

Vertiv presently has a consensus price target of $180.48, indicating a potential upside of 13.00%. BigBear.ai has a consensus price target of $6.33, indicating a potential upside of 1.41%. Given Vertiv’s stronger consensus rating and higher probable upside, equities analysts plainly believe Vertiv is more favorable than BigBear.ai.

Risk & Volatility

Vertiv has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.44, suggesting that its stock price is 244% more volatile than the S&P 500.

Insider & Institutional Ownership

89.9% of Vertiv shares are owned by institutional investors. Comparatively, 7.6% of BigBear.ai shares are owned by institutional investors. 2.6% of Vertiv shares are owned by company insiders. Comparatively, 0.5% of BigBear.ai shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Vertiv 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
Vertiv	$8.01 billion	7.62	$495.80 million	$2.65	60.27
BigBear.ai	$158.24 million	17.23	-$295.55 million	($1.42)	-4.40

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

Summary

Vertiv beats BigBear.ai on 13 of the 15 factors compared between the two stocks.

About Vertiv

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.

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.