Financial Contrast: BigBear.ai (NYSE:BBAI) vs. Telos (NASDAQ:TLS)

Telos (NASDAQ:TLS) and BigBear.ai (NYSE:BBAI) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Insider and Institutional Ownership

62.1% of Telos shares are held by institutional investors. Comparatively, 7.6% of BigBear.ai shares are held by institutional investors. 14.9% of Telos shares are held by insiders. Comparatively, 0.5% 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 will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Telos	-20.47%	-26.12%	-19.88%
BigBear.ai	-274.70%	-26.11%	-12.37%

Earnings & Valuation

This table compares Telos and BigBear.ai”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telos	$108.27 million	4.33	-$52.52 million	($0.41)	-15.49
BigBear.ai	$158.24 million	18.57	-$295.55 million	($1.42)	-4.74

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telos	1	3	2	0	2.17
BigBear.ai	1	2	2	0	2.20

Telos currently has a consensus target price of $7.75, suggesting a potential upside of 22.05%. BigBear.ai has a consensus target price of $6.33, suggesting a potential downside of 5.89%. Given Telos’ higher possible upside, equities analysts clearly believe Telos is more favorable than BigBear.ai.

Volatility & Risk

Telos has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, BigBear.ai has a beta of 3.44, suggesting that its share price is 244% more volatile than the S&P 500.

Summary

BigBear.ai beats Telos on 7 of the 13 factors compared between the two stocks.

About Telos

Telos Corporation, together with its subsidiaries, provides cyber, cloud, and enterprise security solutions worldwide. The company operates in two segments, Security Solutions and Secure Networks. It provides Xacta, a platform for enterprise cyber risk management and security compliance automation; and consulting, assessment and compliance, engineering and evaluation, operations, and penetration testing services. The company also offers Telos Automated Message Handling System, a web-based organizational message distribution and management for mission-critical communications used by military field operatives; and Telos Advanced Cyber Analytics solution, which is a threat feed source of global Internet Protocol addresses known to engage in potentially malicious activity, including mass scanning and generic opportunistic attacks; and Telos Ghost, a solution to eliminate cyberattack surfaces by obfuscating and encrypting data, masking user identity and location, and hiding network resources, as well as provides security and privacy for intelligence gathering, cyber threat protection, securing critical infrastructure, and protecting communications and applications. In addition, the company provides IDTrust360, an enterprise digital trusted identity risk platform for extending flexible hybrid cloud identity services; and ONYX, a touchless fingerprint biometric solution for mobile devices. Further, it offers secure mobility solutions that enable remote work and minimize operational and security concerns across and beyond the enterprise; and network management and defense services for operating, administrating, and defending complex enterprise networks and services for defensive cyber operations. It serves the United States federal government, large commercial businesses, state and local governments, and international customers. Telos Corporation was founded in 1968 and is headquartered in Ashburn, Virginia.

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.