ASGN (NYSE:ASGN – Get Free Report) and BigBear.ai (NYSE:BBAI – Get Free Report) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Profitability
This table compares ASGN and BigBear.ai’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ASGN | 2.85% | 10.94% | 5.72% |
| BigBear.ai | -274.70% | -26.11% | -12.37% |
Insider and Institutional Ownership
95.4% of ASGN shares are held by institutional investors. Comparatively, 7.6% of BigBear.ai shares are held by institutional investors. 3.4% of ASGN shares are held by insiders. Comparatively, 0.5% of BigBear.ai shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ASGN | 3 | 3 | 2 | 0 | 1.88 |
| BigBear.ai | 1 | 2 | 1 | 0 | 2.00 |
ASGN presently has a consensus price target of $54.71, suggesting a potential upside of 3.80%. BigBear.ai has a consensus price target of $6.00, suggesting a potential upside of 27.12%. Given BigBear.ai’s stronger consensus rating and higher possible upside, analysts plainly believe BigBear.ai is more favorable than ASGN.
Risk and Volatility
ASGN has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.45, suggesting that its stock price is 245% more volatile than the S&P 500.
Valuation & Earnings
This table compares ASGN and BigBear.ai”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ASGN | $3.98 billion | 0.57 | $113.50 million | $2.61 | 20.20 |
| BigBear.ai | $158.24 million | 13.02 | -$295.55 million | ($1.42) | -3.32 |
ASGN has higher revenue and earnings than BigBear.ai. BigBear.ai is trading at a lower price-to-earnings ratio than ASGN, indicating that it is currently the more affordable of the two stocks.
Summary
ASGN beats BigBear.ai on 10 of the 14 factors compared between the two stocks.
About ASGN
ASGN Incorporated engages in the provision of information technology (IT) services and solutions in the technology, digital, and creative fields for commercial and government sectors in the United States, Canada, and Europe. It operates through two segments: Commercial and Federal Government. The Commercial Segment provides consulting, creative digital marketing, and permanent placement services primarily to enterprise clients. This segment also offers workforce mobilization, modern enterprise, and digital innovation IT consulting services; and cloud, data and analytics, and digital transformation solutions. The Federal Government Segment provides mission-critical solutions to the department of defense, intelligence communities, and federal civilian agencies. This segment offers cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, and science and engineering solutions. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018. ASGN Incorporated was founded in 1985 and is based in Glen Allen, Virginia.
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.
Receive News & Ratings for ASGN Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ASGN and related companies with MarketBeat.com's FREE daily email newsletter.
