C3.ai offers strong growth, while actions are negotiated with a much lower evaluation than Palantant.
BigBear.a provides national security solutions powered by AI with a promising backward -up of demand.
10 actions that we love better than C3.ai ›
The growth of artificial intelligence (AI) has the potential to create generational wealth for investors who buy and hold good deeds. C3.ai(Nyse: ai) And Bigbear.ai(Nyse: bbai) are two relatively small companies that receive a lot of attention from investors.
These actions offer advanced AI software that could potentially prepare them for explosive growth and shareholder yields. Let us explore where these two companies are and if investors should buy shares.
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C3.ai was lost in the shadow of PalantantThe increase in recent years, but this has been showing strong growth. He reported four consecutive quarters of quarterly income increases by 20% and more, even if the action is negotiated at a multiple price (p / s) of selling prices (P / S). The action reached a higher 52 weeks of $ 45 before switching to its current $ 24 course.
The company provides company AI software for large complex projects. He uses large language models and generative AI to recover and organize data that allows customers to make better decisions. Some of the best uses include fraud detection, discovery of drugs and the management of the supply chain.
The American army is also a major client. Rapid Sustainment Office (RSO) of the Air Force uses the company for aircraft maintenance and predictive analysis. The director of technology Ed Abbo said: “We believe that our program with RSO could be the largest deployment of production AI at the US Department of Defense today.”
A risk for C3.AI is the client’s concentration. About 26% of reservations during the year 2025 came from federal, defense and aerospace contracts, while its activities with Energy Technology Company Baker Hughes also constitutes a large part of his income. In addition, the company does not convert its income into profits. While sales increased by 26% over last year, C3.ai said a net loss adjusted per share of $ 0.16.
However, it is diversifying in several industries, a fact that could be undervalued by Wall Street. Income, excluding its activities with Baker Hughes, increased by 37% from one year to the next in the last quarter. Its ability to take advantage of the main cloud platforms as Microsoft Azure to reach new customers around the world could lead to strong growth and to improve long -term profitability.
The P / S of 8 of the action seems more attractive than the 111 sales of Palantir. C3.AI is not as profitable as Palant, but if it continues to earn more contracts in non -governmental sectors, the action could benefit from it. It is worth considering at least a small investment based on its strong growth in income.
Bigbear.ai provides AI solutions that help organizations collect ideas and make faster decisions from massive amounts of data. The share price has climbed 200% over the past year, but it will have to show much higher income from income to maintain more yields.
Bigbear’s revenues.ai increased by 5% from one year to the next in the last quarter. Its annual sales have barely increased in the past three years, from $ 145 million in 2021 to 158 million dollars in 2024. until the company buys the pace, the benefits of the action will be limited.
There is clearly potential. The company meets the need for more advanced technology to strengthen national security. He has deployed AI solutions for Dallas-Fort Worth International Airport and his counterpart in Denver. At the beginning of last year, he acquired Pangiam, an AI -based AI leader, used for facial recognition and advanced biometrics.
The main risk for the company is its dependence on public spending. This exposes it to potential budget cuts, which is something to consider given the high national debt and the budget deficit. However, the government is more likely to reduce spending on many other things before sacrificing technological expenditure for national security.
Low finances are another negative for BigBear.ai. In addition to the growth of modest income, it brings in negative operations cash flows and transports $ 100 billion in long -term debt to its balance sheet. It has $ 107 million of cash equivalents to compensate for this, but it is not ideal to hold so many debts while burning money.
At its current market capitalization of $ 1.15 billion, investors pay a P / S of 6.1. This leaves room if the company can extend beyond government contracts to the private sector. He has a growing backlog of $ 385 million, which reflects current multiannus programs, including deep commercial relations.
C3.AI has a stronger assessment and a better record for growing income. For these reasons, it is a safer bet for investors looking for a stock of undervalued AI with significant increase potential.
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John Ballard has no position in the actions mentioned. The Motley Fool has positions and recommends Microsoft and Palantant technologies. The Motley Fool recommends C3.ai and recommends the following options: Long January 2026 395 $ Calls on Microsoft and Court January 2026 405 $ calls Microsoft. The Motley Fool has a policy of disclosure.
Should you buy these beaten ia actions? was initially published by the Motley Fool
