Better AI stock: Palantir vs. Bigbear.ai
Two of the major artificial intelligence (AI) stocks over the past year Palantir technology (Funger 7.69%)) and Bigbear.ai (BBAI 7.88%)). Palantir’s stocks have soared almost 500% over the past year, while Bigbear.ai’s stocks have increased by more than 150% at this article.
Let’s look at the possibility of excellent performance in the long run as the two stocks are well performed.
Focus on the defense industry
Palantir and Bigbear.ai are both strong in relationships with the US federal government. Palantir PayPal Found the threats hidden under the terrorist attack on September 11 and protect the United States from terrorists.
Gotham, the first product of Palantir, can collect and analyze data from a vast and extensive data set, and has been used to find high value -added goals in military areas for things such as identifying and tracking terrorism financing. The US government remains the largest customer of Palantir today and accounts for 42%of last quarter’s sales.
Meanwhile, Bigbear.ai was established by the private equity company AI industry partner, the analytical company, Bigbear and Systems Integrator Nuwave, and publicly disclosed in 2021 through a special purpose acquisition company (SPAC ).The company focused on defense, national security and modernization. The contractor. We have signed contracts with several government agencies, including the Ministry of Defense (the Ministry of Defense), the National Security Agency (NSA), the Ministry of Land, Infrastructure and Transport and the Federal Aviation Bureau (FAA).
Image Source: Getty Image.
Palantir’s biggest growth area is from US commercial customers who have accommodated AI platform (AIP) outside the public sector, which acts as an orchestration class that helps users to solve real problems by applying the AI model. This platform can be used for a variety of tasks, from hospital operators to pipeline companies that use AIP.
Bigbear.ai’s technology is also not limited to defense and is used in manufacturing, life science and logistics industries. In commercial aspects, you can find threat detection systems at major US airports such as Dallas-Fort Worth and Denver International.
Internationally, the company began to get traction. One example is a partnership with Smiths Detection, which Bigbear.ai’s algorithms are used to automatically detect the forbidden items of baggage. They are integrated with CT scanners and helps the company open a new global distribution channel for threat detection technology.
Other growth and margin profiles
The two stocks have achieved great results for the past year, but sales growth has been very different. Palantir is accelerating sales growth as US commercial customers flock to AIP and the US government begins to accept AI. In the last quarter, sales grew to 7th place, up 39% to $ 883.9 million.
| Metrics | Q2 ’23 | Q3 ’23 | Q4 ’24 | Q1 ’24 | Q2 ’24 | Q3 ’24 | Q4 ’24 | Q1 ’25 |
|---|---|---|---|---|---|---|---|---|
| Profit growth | 13% | 17% | 20% | 21% | 27% | 30% | 36% | 39% |
Data Source: Palantir Branch Star Report.
Bigbear.ai’s sales growth, on the other hand, can be described as dull. In the last quarter, sales increased to $ 34.8 million to 5%. However, in 2024, one -quarter of the decrease in sales by 21% (Q1) and one -quarter of the increase in sales (Q3) increased by 22% (Q3). Government spending may be unpredictable, which is shown in the results of Bigbear.ai.
There is a big difference between Palantir and Bigbear.ai’s total margin. The total margin is an important indicator because it is directly connected to how easily the company can change its profit to profits. Palantir has a classic high software gun margin and checks in 80.4%last quarter.
Meanwhile, Bigbear.ai’s total margin was only 21.3%in the first quarter. This is Bigbear.Ai more than system integration and government contractors than software AI companies. Engineers and data scientists have to jointly deploy and on-premises on many government projects, which adds a lot of money.
What is a better AI stock?
Regarding the evaluation, Bigbear.Ai is a much lower staple stock, with 7.2 times 7.2 times 2025 analyst estimates and Palantirs with a rate of P/S (Price-to-Sales) ratio. Based on this metrics, the evaluation is less than a tenth of rival AI stocks.
YCHARTS’s PLTR PS ratio (anterior) data
In other words, Palantir has much better profit growth and predictability, as well as a much better total margin. It has a more attractive business model, and the opportunity is huge before it.
Therefore, Palantir is a better stock to own in the long run despite its high evaluation.
