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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Micro Software	$40.86 million	0.51	-$24.40 million	($2.96)	-0.73
BigBear.ai	$155.16 million	2.64	-$60.37 million	($0.42)	-4.02

Smith Micro Software has higher earnings, but lower revenue 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.

Insider & Institutional Ownership

20.8% of Smith Micro Software shares are held by institutional investors. Comparatively, 7.6% of BigBear.ai shares are held by institutional investors. 9.4% of Smith Micro Software shares are held by insiders. Comparatively, 2.0% of BigBear.ai shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

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

Analyst Ratings

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

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

Smith Micro Software presently has a consensus price target of $28.00, suggesting a potential upside of 1,190.32%. BigBear.ai has a consensus price target of $3.00, suggesting a potential upside of 77.51%. Given Smith Micro Software’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Smith Micro Software is more favorable than BigBear.ai.

Volatility & Risk

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

Summary

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

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.

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.