CDW (NASDAQ:CDW – Get Free Report) and BigBear.ai (NYSE:BBAI – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Analyst Ratings
This is a summary of recent ratings and recommmendations for CDW and BigBear.ai, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CDW | 1 | 3 | 4 | 1 | 2.56 |
| BigBear.ai | 1 | 1 | 1 | 0 | 2.00 |
CDW currently has a consensus target price of $140.63, suggesting a potential upside of 12.10%. BigBear.ai has a consensus target price of $5.50, suggesting a potential upside of 8.55%. Given CDW’s stronger consensus rating and higher probable upside, analysts plainly believe CDW is more favorable than BigBear.ai.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| CDW | 4.70% | 49.67% | 8.02% |
| BigBear.ai | -226.69% | -16.02% | -11.15% |
Volatility and Risk
CDW has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.25, indicating that its share price is 225% more volatile than the S&P 500.
Insider and Institutional Ownership
93.2% of CDW shares are owned by institutional investors. Comparatively, 7.6% of BigBear.ai shares are owned by institutional investors. 0.8% of CDW shares are owned by insiders. Comparatively, 0.6% of BigBear.ai shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares CDW and BigBear.ai”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CDW | $22.42 billion | 0.71 | $1.07 billion | $8.22 | 15.26 |
| BigBear.ai | $127.67 million | 19.01 | -$293.91 million | ($0.87) | -5.82 |
CDW has higher revenue and earnings than BigBear.ai. BigBear.ai is trading at a lower price-to-earnings ratio than CDW, indicating that it is currently the more affordable of the two stocks.
Summary
CDW beats BigBear.ai on 13 of the 15 factors compared between the two stocks.
About CDW
CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.
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.
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