Reviewing BigBear.ai (NYSE:BBAI) & CGI Group (NYSE:GIB)

CGI Group (NYSE:GIBGet Free Report) and BigBear.ai (NYSE:BBAIGet Free Report) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
CGI Group 10.54% 18.83% 9.83%
BigBear.ai -65.20% -13.44% -10.63%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CGI Group and BigBear.ai, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CGI Group 1 6 0 0 1.86
BigBear.ai 1 1 1 0 2.00

CGI Group presently has a consensus target price of $83.67, indicating a potential upside of 18.38%. BigBear.ai has a consensus target price of $5.00, indicating a potential upside of 70.94%. Given BigBear.ai’s stronger consensus rating and higher probable upside, analysts plainly believe BigBear.ai is more favorable than CGI Group.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CGI Group $11.38 billion 1.29 $1.19 billion $5.83 12.12
BigBear.ai $131.63 million 10.66 -$293.91 million ($0.21) -13.93

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.

Insider and Institutional Ownership

66.7% of CGI Group shares are held by institutional investors. Comparatively, 7.6% of BigBear.ai shares are held by institutional investors. 9.9% of CGI Group shares are held by insiders. Comparatively, 0.6% of BigBear.ai shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

CGI Group has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.35, suggesting that its share price is 235% more volatile than the S&P 500.

Summary

CGI Group beats BigBear.ai on 9 of the 14 factors compared between the two stocks.

About CGI Group

(Get Free Report)

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.

About BigBear.ai

(Get Free Report)

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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