Critical Contrast: Fujitsu (OTCMKTS:FJTSY) and BigBear.ai (NYSE:BBAI)

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

Insider and Institutional Ownership

7.6% of BigBear.ai shares are owned by institutional investors. Comparatively, 0.1% of Fujitsu shares are owned by institutional investors. 0.5% of BigBear.ai shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for BigBear.ai and Fujitsu, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	1	1	1	0	2.00
Fujitsu	0	2	0	0	2.00

BigBear.ai currently has a consensus target price of $5.50, suggesting a potential upside of 53.85%. Given BigBear.ai’s higher possible upside, research analysts clearly believe BigBear.ai is more favorable than Fujitsu.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BigBear.ai	-230.21%	-18.22%	-10.93%
Fujitsu	N/A	N/A	N/A

Valuation & Earnings

This table compares BigBear.ai and Fujitsu”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigBear.ai	$127.67 million	13.33	-$293.91 million	($1.00)	-3.58
Fujitsu	$23.31 billion	1.55	$1.45 billion	$0.45	45.78

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

Volatility and Risk

BigBear.ai has a beta of 3.47, meaning that its share price is 247% more volatile than the S&P 500. Comparatively, Fujitsu has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Summary

Fujitsu beats BigBear.ai on 7 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 Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.