Vertex (NASDAQ:VERX – Get Free Report) and BigBear.ai (NYSE:BBAI – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Institutional & Insider Ownership
59.1% of Vertex shares are owned by institutional investors. Comparatively, 7.6% of BigBear.ai shares are owned by institutional investors. 45.0% of Vertex shares are owned by company insiders. Comparatively, 2.0% 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 is poised for long-term growth.
Volatility and Risk
Vertex has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.68, suggesting that its stock price is 268% more volatile than the S&P 500.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Vertex | 0 | 4 | 6 | 0 | 2.60 |
BigBear.ai | 0 | 2 | 2 | 0 | 2.50 |
Vertex currently has a consensus target price of $35.78, indicating a potential upside of 25.05%. BigBear.ai has a consensus target price of $3.00, indicating a potential upside of 105.48%. Given BigBear.ai’s higher probable upside, analysts clearly believe BigBear.ai is more favorable than Vertex.
Earnings and Valuation
This table compares Vertex and BigBear.ai’s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Vertex | $572.39 million | 7.71 | -$13.09 million | ($0.10) | -286.10 |
BigBear.ai | $155.16 million | 2.28 | -$60.37 million | ($0.42) | -3.48 |
Vertex has higher revenue and earnings than BigBear.ai. Vertex is trading at a lower price-to-earnings ratio than BigBear.ai, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Vertex and BigBear.ai’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Vertex | -2.29% | 16.15% | 5.08% |
BigBear.ai | -38.90% | N/A | -29.60% |
Summary
Vertex beats BigBear.ai on 11 of the 14 factors compared between the two stocks.
About Vertex
Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools. It provides implementation services, such as configuration, data migration and implementation, and support and training; and managed services, including tax return preparation, filing and tax payment, and notice management. The company sells its software products through software licenses and software as a service subscription. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.
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.
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