Contrasting BigBear.ai (NYSE:BBAI) and AvidXchange (NASDAQ:AVDX)

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

Risk and Volatility

BigBear.ai has a beta of 3.46, indicating that its stock price is 246% more volatile than the S&P 500. Comparatively, AvidXchange has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for BigBear.ai and AvidXchange, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	0	0	2	0	3.00
AvidXchange	2	6	6	0	2.29

BigBear.ai presently has a consensus price target of $3.25, suggesting a potential upside of 84.66%. AvidXchange has a consensus price target of $11.18, suggesting a potential upside of 11.01%. Given BigBear.ai’s stronger consensus rating and higher probable upside, equities research analysts clearly believe BigBear.ai is more favorable than AvidXchange.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BigBear.ai	-109.90%	-174.74%	-26.80%
AvidXchange	-0.23%	0.74%	0.22%

Institutional and Insider Ownership

7.6% of BigBear.ai shares are owned by institutional investors. Comparatively, 80.6% of AvidXchange shares are owned by institutional investors. 1.4% of BigBear.ai shares are owned by company insiders. Comparatively, 10.4% of AvidXchange shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigBear.ai	$155.16 million	2.84	-$60.37 million	($0.91)	-1.93
AvidXchange	$380.72 million	5.50	-$47.33 million	N/A	N/A

AvidXchange has higher revenue and earnings than BigBear.ai.

Summary

AvidXchange beats BigBear.ai on 10 of the 13 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 AvidXchange

AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions. The company serves real estate, community association management, construction, financial services, healthcare facilities, social services, education, hospitality, and media sectors through direct salesforces; strategic channel partnerships; and software and technology business partners. AvidXchange Holdings, Inc. was incorporated in 2000 and is headquartered in Charlotte, North Carolina.