Better artificial intelligence stock: bigbear.ai vs. c3.ai

Artificial intelligence (AI) is a hot sector in which you can invest, and passion through AI is understandable. The technology was celebrated as the “next big computer wave” by Microsoft CEO Satya Nadella.

A number of companies use KI to transform the industries. Two such companies are Bigbear.ai (BBAI 44.81%))) And C3.AI (Ai 1.24%))). The former employs AI to support defense and the national security sector. The latter delivers turnkey and custom AI software in various industries.

The decision as to which AI investment is a clear choice is a clear choice. Let us dig in Bigbear.ai and C3.ai to evaluate both.

Reasons to take into account C3.AI

C3.ai has been in the middle of the rapid increase in demand for AI. The ability of the company to quickly provide turnkey AI applications is a strength, and this is a robust partner network that helps him to promote business growth.

For example, C3.ai switched a partnership with Microsoft in September, in which the sales team of the latter C3.AI solutions is sold. Also his partnership with alphabetGoogle Cloud has contributed to the fact that the partner network concludes 62% of all offers in the second quarter of C3.AI, ended on October 31, 2024.

His partners helped C3.AI to achieve sales of $ 94.3 million in the second quarter in the second quarter, which was a strong increase of 29% compared to the previous year. 86% of them represented income from subscriptions. This is a strength because subscriptions C3.AI offer recurring income.

The company’s sales growth in the second quarter meant that C3.AI was forecast between 378 and 398 million US dollars for the 2025 financial year. This is good growth compared to the 310.6 million US dollars of the previous year.

Despite its strengths, C3.AI is not profitable. It left the second quarter with a net loss of 66 million US dollars. However, this was a decline compared to the net loss of the previous year of 70 million US dollars, which shows that C3.AI tries to manage the costs.

A look at bigbear.ai

Bigbear.ai offers AI software for defense and national security. For example, his AI scans pictures of travelers at Denver International Airport to automatically check their identity. Customers include the US Air Force and Army and added the Navy on January 30th.

In the third quarter, Bigbear.ai recorded strong sales growth from 22% compared to the previous year to $ 41.5 million. Although this type of increase is excellent, part of it comes from the takeover of the facial recognition company Pangiam last year and not from organic growth.

In fact, the first three quarters of the company of 2024 decreased of 114.4 million US dollars compared to the $ 114.6 million in 2023. This is a disappointing result for a AI company, but Bigbear.ai estimates that in 2024 it will be completed by sales in the range of $ 165 million to $ 180 million, which will increase compared to the 155.2 million US – Corresponds to the dollar of 2023.

In addition, Bigbear.ai’s Q3 gross margin was 26%, which is terrible for a software company. Compare this with C3.AIS much healthier fiscal q2 gross para of 61%.

With such bad margins, it is no wonder that Bigbear is not profitable. It achieved a net loss of $ 12.2 million in the third quarter. Many technology companies sacrifice profits to expand their business as quickly as possible, but the growth of sales by bigbear.ai was not consistent. This makes its lack of profitability particularly worrying.

Perhaps this will change as part of the new CEO Kevin Mcaleenan, which took over the top position on January 15. He was a secretary for home protection during the first term of office of President Trump. With the return of President Trump, the timely appointment of Mr. Mcaleenan Bigbear could help.

Choose between Bigbear.ai and C3.ai shares

After comparing Bigbear.ai and C3.ai, the latter seems to be the better shares for artificial intelligence in view of its stronger financial data and consistent sales growth. But there is more to discover.

The C3.ai partner network is the key to its success, and one of the greatest partnerships is at Energy Company Baker Hughesthe C3.AI solutions sold to the oil and gas industry. The partnership will take place in April this year.

If the partnership is not renewed, the loss C3.AI could be devastating. Some estimates state that Baker Hughes is responsible for a third of the sales of C3.AI. This wrinkle makes it more difficult to decide between c3.ai and bigbear.ai.

The ideal procedure is currently to wait for the investment in both companies. C3.ai may still be a better choice for the investment, but it is best to see whether the Baker Hughes partnership will be renewed first.

As for bigbear.ai, this is an encouraging sign if its sales in the fourth quarter lead to double -digit growth in the second year to double -digit growth of the year. Since it has a new CEO, Bigbear.ai’s performance for a few quarters should be monitored to determine whether Mr. Mcaleenan can achieve constant sales growth and strengthen the financial data for companies before taking an investment.