BigBear.ai (NYSE:BBAI) versus Vertex (NASDAQ:VERX) Financial Analysis

Vertex (NASDAQ:VERX) and BigBear.ai (NYSE:BBAI) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

59.1% of Vertex shares are owned by institutional investors. Comparatively, 7.6% of BigBear.ai shares are owned by institutional investors. 45.0% of Vertex shares are owned by company insiders. Comparatively, 2.0% 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 will outperform the market over the long term.

Valuation and Earnings

This table compares Vertex and BigBear.ai’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertex	$572.39 million	7.88	-$13.09 million	($0.10)	-292.10
BigBear.ai	$155.16 million	2.44	-$60.37 million	($0.42)	-3.71

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

Volatility and Risk

Vertex has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.68, indicating that its share price is 268% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Vertex and BigBear.ai, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertex	0	4	6	0	2.60
BigBear.ai	0	2	2	0	2.50

Vertex currently has a consensus target price of $35.78, suggesting a potential upside of 22.40%. BigBear.ai has a consensus target price of $3.00, suggesting a potential upside of 91.69%. Given BigBear.ai’s higher possible upside, analysts clearly believe BigBear.ai is more favorable than Vertex.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vertex	-2.29%	16.15%	5.08%
BigBear.ai	-38.90%	N/A	-29.60%

Summary

Vertex beats BigBear.ai on 11 of the 14 factors compared between the two stocks.

About Vertex

Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools. It provides implementation services, such as configuration, data migration and implementation, and support and training; and managed services, including tax return preparation, filing and tax payment, and notice management. The company sells its software products through software licenses and software as a service subscription. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, 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.