Comparing EPAM Systems (NYSE:EPAM) & BigBear.ai (NYSE:BBAI)
by Michael Walen · The Markets DailyEPAM Systems (NYSE:EPAM – 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 compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
Analyst Recommendations
This is a breakdown of current recommendations for EPAM Systems and BigBear.ai, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EPAM Systems | 0 | 7 | 11 | 0 | 2.61 |
| BigBear.ai | 1 | 1 | 1 | 0 | 2.00 |
EPAM Systems presently has a consensus price target of $194.19, suggesting a potential upside of 41.59%. BigBear.ai has a consensus price target of $5.50, suggesting a potential upside of 56.47%. Given BigBear.ai’s higher probable upside, analysts plainly believe BigBear.ai is more favorable than EPAM Systems.
Volatility and Risk
EPAM Systems has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.47, indicating that its stock price is 247% more volatile than the S&P 500.
Institutional & Insider Ownership
91.6% of EPAM Systems shares are held by institutional investors. Comparatively, 7.6% of BigBear.ai shares are held by institutional investors. 4.3% of EPAM Systems shares are held by company insiders. Comparatively, 0.5% of BigBear.ai shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares EPAM Systems and BigBear.ai”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EPAM Systems | $5.46 billion | 1.32 | $377.68 million | $6.73 | 20.38 |
| BigBear.ai | $127.67 million | 13.11 | -$293.91 million | ($1.00) | -3.52 |
EPAM Systems has higher revenue and earnings than BigBear.ai. BigBear.ai is trading at a lower price-to-earnings ratio than EPAM Systems, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares EPAM Systems and BigBear.ai’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EPAM Systems | 6.92% | 13.57% | 10.41% |
| BigBear.ai | -230.21% | -18.22% | -10.93% |
Summary
EPAM Systems beats BigBear.ai on 11 of the 14 factors compared between the two stocks.
About EPAM Systems
EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; infrastructure management services, such as software development, testing, performance tuning, deployment, maintenance, and support services. It also provides operation solutions comprising integrated engineering practices and smart automation services. In addition, the company offers business, experience, technology, data, and technical advisory consulting services; and digital and service design solutions, which comprise strategy, design, creative, and program management services, as well as physical product development, such as artificial intelligence, robotics, and virtual reality. The company serves the financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, and other industries EPAM Systems, Inc. was founded in 1993 and is headquartered in Newtown, 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.