BigBear.ai (NYSE:BBAI) & Smith Micro Software (NASDAQ:SMSI) Head to Head Survey

BigBear.ai (NYSE:BBAI) and Smith Micro Software (NASDAQ:SMSI) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

7.6% of BigBear.ai shares are held by institutional investors. Comparatively, 20.8% of Smith Micro Software shares are held by institutional investors. 2.0% of BigBear.ai shares are held by company insiders. Comparatively, 9.4% of Smith Micro Software shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

BigBear.ai has a beta of 3.68, meaning that its stock price is 268% more volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	0	2	2	0	2.50
Smith Micro Software	0	0	2	0	3.00

BigBear.ai currently has a consensus target price of $3.00, suggesting a potential upside of 91.69%. Smith Micro Software has a consensus target price of $28.00, suggesting a potential upside of 1,184.40%. Given Smith Micro Software’s stronger consensus rating and higher probable upside, analysts clearly believe Smith Micro Software is more favorable than BigBear.ai.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BigBear.ai	-38.90%	N/A	-29.60%
Smith Micro Software	-59.70%	-13.46%	-10.91%

Valuation & Earnings

This table compares BigBear.ai and Smith Micro Software’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigBear.ai	$155.16 million	2.45	-$60.37 million	($0.42)	-3.73
Smith Micro Software	$40.86 million	0.51	-$24.40 million	($2.96)	-0.74

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

Summary

Smith Micro Software beats BigBear.ai on 7 of the 13 factors compared between the two stocks.

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.

About Smith Micro Software

Smith Micro Software, Inc. engages in the development and sale of software to enhance the mobile experience to wireless and cable service providers in the Americas, Europe, the Middle East, and Africa. The company offers SafePath Family, SafePath IoT, SafePath Home, and SafePath Premium product suite, which provides tools to protect digital lifestyles and manage connected devices inside and outside the home; and CommSuite, a messaging platform that helps mobile service provides deliver a next-generation voicemail experience to mobile subscribers, as well as enables multi-language voice-to-text (VTT) transcription messaging. It also offers ViewSpot, a retail display management platform that provides on-screen and interactive demos to wireless carriers and other smartphone retailers; and technical support and customer services. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Pittsburgh, Pennsylvania.