Head-To-Head Contrast: ASGN (NYSE:ASGN) versus BigBear.ai (NYSE:BBAI)

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

Insider & Institutional Ownership

7.6% of BigBear.ai shares are held by institutional investors. Comparatively, 95.4% of ASGN shares are held by institutional investors. 0.5% of BigBear.ai shares are held by insiders. Comparatively, 3.4% of ASGN shares are held by 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 and Risk

BigBear.ai has a beta of 3.45, indicating that its share price is 245% more volatile than the S&P 500. Comparatively, ASGN has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for BigBear.ai and ASGN, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	1	2	1	0	2.00
ASGN	3	3	2	0	1.88

BigBear.ai presently has a consensus target price of $6.00, suggesting a potential upside of 26.18%. ASGN has a consensus target price of $54.71, suggesting a potential upside of 3.47%. Given BigBear.ai’s stronger consensus rating and higher possible upside, equities analysts clearly believe BigBear.ai is more favorable than ASGN.

Valuation and Earnings

This table compares BigBear.ai and ASGN”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigBear.ai	$144.20 million	14.40	-$295.55 million	($1.42)	-3.35
ASGN	$3.98 billion	0.57	$175.20 million	$2.97	17.80

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BigBear.ai	-274.70%	-26.11%	-12.37%
ASGN	2.85%	10.92%	5.36%

Summary

ASGN beats BigBear.ai on 10 of the 14 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 ASGN

ASGN Incorporated engages in the provision of information technology (IT) services and solutions in the technology, digital, and creative fields for commercial and government sectors in the United States, Canada, and Europe. It operates through two segments: Commercial and Federal Government. The Commercial Segment provides consulting, creative digital marketing, and permanent placement services primarily to enterprise clients. This segment also offers workforce mobilization, modern enterprise, and digital innovation IT consulting services; and cloud, data and analytics, and digital transformation solutions. The Federal Government Segment provides mission-critical solutions to the department of defense, intelligence communities, and federal civilian agencies. This segment offers cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, and science and engineering solutions. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018. ASGN Incorporated was founded in 1985 and is based in Glen Allen, Virginia.