Comparing Wipro (NYSE:WIT) & BigBear.ai (NYSE:BBAI)

Wipro (NYSE:WIT) and BigBear.ai (NYSE:BBAI) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Valuation and Earnings

This table compares Wipro 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
Wipro	$10.43 billion	2.82	$1.54 billion	$0.15	18.70
BigBear.ai	$158.24 million	19.40	-$295.55 million	($1.42)	-4.95

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

Institutional & Insider Ownership

2.4% of Wipro shares are held by institutional investors. Comparatively, 7.6% of BigBear.ai shares are held by institutional investors. 1.0% of Wipro shares are held by insiders. Comparatively, 0.5% of BigBear.ai shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Wipro and BigBear.ai, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wipro	1	5	0	0	1.83
BigBear.ai	1	2	2	0	2.20

BigBear.ai has a consensus target price of $6.33, suggesting a potential downside of 9.94%. Given BigBear.ai’s stronger consensus rating and higher possible upside, analysts plainly believe BigBear.ai is more favorable than Wipro.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wipro	15.06%	15.80%	10.38%
BigBear.ai	-274.70%	-26.11%	-12.37%

Risk & Volatility

Wipro has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.44, suggesting that its stock price is 244% more volatile than the S&P 500.

Summary

Wipro beats BigBear.ai on 8 of the 14 factors compared between the two stocks.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.

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.