Cloudflare (NYSE:NET – Get Free Report) and BigBear.ai (NYSE:BBAI – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Institutional & Insider Ownership
82.7% of Cloudflare shares are held by institutional investors. Comparatively, 7.6% of BigBear.ai shares are held by institutional investors. 10.7% of Cloudflare shares are held by insiders. Comparatively, 0.6% of BigBear.ai shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Cloudflare and BigBear.ai, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cloudflare | 3 | 7 | 26 | 0 | 2.64 |
| BigBear.ai | 1 | 2 | 1 | 0 | 2.00 |
Cloudflare presently has a consensus price target of $338.48, suggesting a potential upside of 7.67%. BigBear.ai has a consensus price target of $4.50, suggesting a potential upside of 95.23%. Given BigBear.ai’s higher possible upside, analysts clearly believe BigBear.ai is more favorable than Cloudflare.
Volatility and Risk
Cloudflare has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.37, meaning that its share price is 237% more volatile than the S&P 500.
Profitability
This table compares Cloudflare and BigBear.ai’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cloudflare | -8.75% | -6.05% | -1.39% |
| BigBear.ai | -126.84% | -15.17% | -12.90% |
Valuation & Earnings
This table compares Cloudflare and BigBear.ai”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cloudflare | $2.17 billion | 51.26 | -$102.27 million | ($0.68) | -462.30 |
| BigBear.ai | $142.06 million | 7.81 | -$293.91 million | ($0.37) | -6.23 |
Cloudflare has higher revenue and earnings than BigBear.ai. Cloudflare is trading at a lower price-to-earnings ratio than BigBear.ai, indicating that it is currently the more affordable of the two stocks.
Summary
Cloudflare beats BigBear.ai on 10 of the 14 factors compared between the two stocks.
About Cloudflare
Cloudflare, Inc. provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats. The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.
About BigBear.ai
BigBear.ai Holdings, Inc. provides artificial intelligence and decision-intelligence solutions that help organizations analyze data and support complex operational decisions. Its services include data integration, predictive analytics, machine learning and computer vision, with applications in areas such as national security, defense, supply chain management and travel security. The company serves U.S. government customers as well as commercial organizations. Its offerings are designed to help customers combine information from multiple sources, identify patterns and improve planning and operational awareness.
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