Financial Analysis: BigBear.ai (NYSE:BBAI) versus Evolv Technologies (NASDAQ:EVLV)
by Tristan Rich · The Markets DailyEvolv Technologies (NASDAQ:EVLV – Get Free Report) and BigBear.ai (NYSE:BBAI – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.
Volatility & Risk
Evolv Technologies has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.47, indicating that its share price is 247% more volatile than the S&P 500.
Institutional & Insider Ownership
66.7% of Evolv Technologies shares are owned by institutional investors. Comparatively, 7.6% of BigBear.ai shares are owned by institutional investors. 11.3% of Evolv Technologies shares are owned by company insiders. Comparatively, 0.5% of BigBear.ai shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Evolv Technologies and BigBear.ai”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Evolv Technologies | $145.90 million | 8.16 | -$33.14 million | ($0.21) | -31.60 |
| BigBear.ai | $127.67 million | 13.86 | -$293.91 million | ($1.00) | -3.70 |
Evolv Technologies has higher revenue and earnings than BigBear.ai. Evolv Technologies is trading at a lower price-to-earnings ratio than BigBear.ai, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings for Evolv Technologies and BigBear.ai, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Evolv Technologies | 1 | 1 | 3 | 1 | 2.67 |
| BigBear.ai | 1 | 1 | 1 | 0 | 2.00 |
Evolv Technologies presently has a consensus price target of $9.13, indicating a potential upside of 37.53%. BigBear.ai has a consensus price target of $5.50, indicating a potential upside of 48.85%. Given BigBear.ai’s higher probable upside, analysts plainly believe BigBear.ai is more favorable than Evolv Technologies.
Profitability
This table compares Evolv Technologies and BigBear.ai’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Evolv Technologies | -22.71% | -30.45% | -11.58% |
| BigBear.ai | -230.21% | -18.22% | -10.93% |
Summary
Evolv Technologies beats BigBear.ai on 9 of the 15 factors compared between the two stocks.
About Evolv Technologies
Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based weapons detection for security screening in the United States and internationally. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives; and Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics. The company was founded in 2013 and is headquartered in Waltham, Massachusetts.
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.