Head to Head Survey: BigBear.ai (NYSE:BBAI) & CDW (NASDAQ:CDW)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BigBear.ai	-226.69%	-16.02%	-11.15%
CDW	4.70%	49.67%	8.02%

Institutional and Insider Ownership

7.6% of BigBear.ai shares are held by institutional investors. Comparatively, 93.2% of CDW shares are held by institutional investors. 0.6% of BigBear.ai shares are held by insiders. Comparatively, 0.8% of CDW shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigBear.ai	$127.35 million	15.78	-$293.91 million	($0.87)	-4.82
CDW	$22.42 billion	0.63	$1.07 billion	$8.22	13.48

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BigBear.ai and CDW, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	1	1	1	0	2.00
CDW	0	5	2	1	2.50

BigBear.ai currently has a consensus price target of $5.50, suggesting a potential upside of 31.11%. CDW has a consensus price target of $142.14, suggesting a potential upside of 28.26%. Given BigBear.ai’s higher probable upside, equities research analysts clearly believe BigBear.ai is more favorable than CDW.

Volatility & Risk

BigBear.ai has a beta of 3.25, meaning that its share price is 225% more volatile than the S&P 500. Comparatively, CDW has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Summary

CDW beats BigBear.ai on 12 of the 15 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 CDW

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.