Head to Head Comparison: BigBear.ai (NYSE:BBAI) versus Grid Dynamics (NASDAQ:GDYN)

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

Analyst Ratings

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

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

Grid Dynamics presently has a consensus target price of $11.33, indicating a potential upside of 31.02%. BigBear.ai has a consensus target price of $6.00, indicating a potential upside of 4.90%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, research analysts clearly believe Grid Dynamics is more favorable than BigBear.ai.

Valuation and Earnings

This table compares Grid Dynamics and BigBear.ai”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grid Dynamics	$350.57 million	2.09	$4.04 million	$0.15	57.67
BigBear.ai	$158.24 million	15.78	-$295.55 million	($1.42)	-4.03

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.

Institutional and Insider Ownership

71.2% of Grid Dynamics shares are owned by institutional investors. Comparatively, 7.6% of BigBear.ai shares are owned by institutional investors. 6.5% of Grid Dynamics 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

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

Volatility and Risk

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

Summary

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

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.

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.