Grid Dynamics (NASDAQ:GDYN) vs. BigBear.ai (NYSE:BBAI) Critical Comparison

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

Analyst Recommendations

This is a summary of recent ratings and price targets for BigBear.ai and Grid Dynamics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	1	3	1	0	2.00
Grid Dynamics	0	2	3	0	2.60

BigBear.ai presently has a consensus price target of $6.00, indicating a potential downside of 2.12%. Grid Dynamics has a consensus price target of $11.33, indicating a potential upside of 23.59%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, analysts plainly believe Grid Dynamics is more favorable than BigBear.ai.

Volatility and Risk

BigBear.ai has a beta of 3.46, suggesting that its stock price is 246% more volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BigBear.ai	-274.70%	-26.11%	-12.37%
Grid Dynamics	3.42%	1.74%	1.52%

Earnings & Valuation

This table compares BigBear.ai and Grid Dynamics”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	16.91	-$295.55 million	($1.42)	-4.32
Grid Dynamics	$350.57 million	2.22	$4.04 million	$0.15	61.13

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

Insider and Institutional Ownership

7.6% of BigBear.ai shares are held by institutional investors. Comparatively, 71.2% of Grid Dynamics shares are held by institutional investors. 0.5% of BigBear.ai shares are held by insiders. Comparatively, 6.5% of Grid Dynamics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Grid Dynamics beats BigBear.ai on 12 of the 14 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 Grid Dynamics

Grid Dynamics Holdings, Inc., together with its subsidiaries, provides technology consulting, platform and product engineering, and analytics services in North America, Europe, and internationally. It offers cloud platform and product engineering services, such as architecting, designing, and building scalable and secure cloud-based platforms and business applications; and AI/machine learning and data platform engineering services that build platforms to facilitate batch and streaming data ingestion, quality governance, orchestration, semantic modeling, observability, and analysis at scale. The company provides digital engagement services, including digital ecosystem design and implementation; and supply chain, Internet of Thing, and advanced manufacturing, which focuses on transforming traditional operations into smart and connected ecosystems. It serves customers that operate in the tech, media, telecommunications, retail, consumer packaged goods, manufacturing, and finance industries. The company was formerly known as ChaSerg Technology Acquisition Corp. and changed its name to Grid Dynamics Holdings, Inc. Grid Dynamics Holdings, Inc. was founded in 2006 and is headquartered in San Ramon, California.