Palantir vs. BigBear.ai: A Tale of Two AI Companies

Palantir and BigBear.ai present contrasting growth paths. While Palantir sees accelerating revenue and profitability, BigBear.ai struggles with stagnation. Investors need to assess both companies' financials before making investment decisions.

Date: 22-02-2025

AI Rating: 7

Earnings Per Share (EPS): Palantir has reported a significant increase in GAAP EPS, doubling in 2024, signaling strong profitability and investor confidence. Conversely, BigBear.ai remains deeply unprofitable on a GAAP basis.

Revenue Growth: Palantir's revenue growth is notable, with a 17% rise in 2023 followed by a remarkable 29% increase in 2024, showing a strong upward trajectory. In contrast, BigBear.ai reports only a 6% increase in 2022 and stagnation in 2023, highlighting its challenges in growth.

Net Income: Palantir's transition to profitability in 2023 enhances its appeal to investors, while BigBear.ai's ongoing losses may deter potential shareholders.

Profit Margins: Palantir's increased profitability signifies a potentially favorable profit margin outlook. On the other hand, BigBear.ai's struggles with profitability may lead to negative perceptions regarding its profit margins.

Free Cash Flow (FCF): The report does not mention Free Cash Flow, leaving a gap in understanding cash efficiency for either company.

Return on Equity (ROE): No information on ROE is provided in the report.

In summary, Palantir's robust revenue growth and profitability position it favorably compared to BigBear.ai, which is experiencing revenue stagnation and struggles with profitability. The contrasting financial health of these companies may significantly impact their stock prices in the current market context.

Stocks: PLTR BBAI