ASGN (NYSE:ASGN – Get Free Report) and BigBear.ai (NYSE:BBAI – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Institutional and Insider 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares ASGN and BigBear.ai”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ASGN | $3.98 billion | 0.45 | $113.50 million | $2.61 | 16.02 |
| BigBear.ai | $158.24 million | 11.28 | -$295.55 million | ($1.42) | -2.88 |
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.
Analyst Recommendations
This is a breakdown of recent recommendations for ASGN and BigBear.ai, as provided by MarketBeat.
| 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 currently has a consensus price target of $54.71, indicating a potential upside of 30.83%. BigBear.ai has a consensus price target of $6.00, indicating a potential upside of 46.70%. Given BigBear.ai’s stronger consensus rating and higher probable upside, analysts plainly believe BigBear.ai is more favorable than ASGN.
Volatility and Risk
ASGN has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.45, indicating that its share price is 245% more volatile than the S&P 500.
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% |
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.
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