BigBear.ai (NYSE:BBAI – Get Free Report) and CGI Group (NYSE:GIB – Get Free Report) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.
Insider and Institutional Ownership
7.5% of BigBear.ai shares are owned by institutional investors. Comparatively, 66.7% of CGI Group shares are owned by institutional investors. 0.6% of BigBear.ai shares are owned by company insiders. Comparatively, 9.9% of CGI Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
BigBear.ai has a beta of 3.35, meaning that its share price is 235% more volatile than the S&P 500. Comparatively, CGI Group has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| BigBear.ai | -65.20% | -13.44% | -10.63% |
| CGI Group | 10.54% | 18.83% | 9.83% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for BigBear.ai and CGI Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BigBear.ai | 1 | 1 | 1 | 0 | 2.00 |
| CGI Group | 1 | 6 | 0 | 0 | 1.86 |
BigBear.ai presently has a consensus target price of $5.00, indicating a potential upside of 70.65%. CGI Group has a consensus target price of $83.67, indicating a potential upside of 13.54%. Given BigBear.ai’s stronger consensus rating and higher possible upside, analysts clearly believe BigBear.ai is more favorable than CGI Group.
Earnings & Valuation
This table compares BigBear.ai and CGI Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BigBear.ai | $127.67 million | 11.00 | -$293.91 million | ($0.21) | -13.95 |
| CGI Group | $11.38 billion | 1.34 | $1.19 billion | $5.83 | 12.64 |
CGI Group has higher revenue and earnings than BigBear.ai. BigBear.ai is trading at a lower price-to-earnings ratio than CGI Group, indicating that it is currently the more affordable of the two stocks.
Summary
CGI Group beats BigBear.ai on 9 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 CGI Group
CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services. Its services include the business and strategic IT consulting, systems integration, and software solutions. The company also provides application development, modernization and maintenance, holistic enterprise digitization, automation, hybrid and cloud management, and business process services; intellectual property-based solutions; business consulting; managed IT services; and IT infrastructure services. It serves clients operating in government, banking and capital market, health, utility, communication and media, oil and gas, space, manufacturing, insurance, life sciences, retail and consumer service, and transportation and logistics sectors. The company operates in Canada, France, Spain, Portugal, the United States, Germany, Sweden, Norway, the United Kingdom, Australia, Finland, Poland, Baltics, the Netherlands, Denmark, Czech Republic, India, the Philippines, Asia Pacific, and internationally. Western and Southern Europe; Australia; Scandinavia; Finland, Poland, and Baltics; the United States; the United Kingdom; and the Asia Pacific. The company was formerly known as CGI Group Inc. and changed its name to CGI Inc. in January 2019. CGI Inc. was founded in 1976 and is headquartered in Montreal, Canada.
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