Better Artificial Intelligence Stock: BigBear.ai vs. UiPath

• BigBear.ai is struggling to turn its halfway business.

• UiPath’s high-growth days are over, but the RPA marketplace is inactive expanding.

• One of these niche AI stocks is intelligibly a amended buy.

• 10 stocks we similar amended than BigBear.ai ›

BigBear.ai (NYSE: BBAI) and UiPath (NYSE: PATH) correspond 2 antithetic ways to put successful the booming AI market. BigBear.ai plugs its AI modules into borderline networks to intercept and analyse incoming data, portion UiPath automates repetitive tasks with its bundle robots.

Both stocks disappointed their aboriginal investors. BigBear.ai, which went nationalist by merging with a peculiar intent acquisition institution (SPAC) successful December 2021, opened astatine $9.84 but present trades astatine little than $7. UiPath, which went nationalist astatine $56 successful its IPO successful April 2021, trades astatine astir $18. Should you put successful either of these oft-overlooked AI stocks today?

BigBear.ai develops 3 AI modules -- Observe, Orient, and Dominate -- which ingest data, spot recurring trends, and foretell aboriginal outcomes, respectively. It plugs these modules into the borderline networks that beryllium betwixt an organization's root servers and its extremity users.

By intercepting that information earlier it reaches the root server, it tin supply faster responses than on-site AI applications. It besides precocious agreed to get the generative AI level supplier Ask Sage to grow that ecosystem, and that $250 cardinal acquisition should adjacent by the extremity of 2025 oregon aboriginal 2026.

BigBear.ai besides acquired Pangiam, a developer of AI imaginativeness tools, for $70 cardinal successful aboriginal 2024. Pangiam's CEO Kevin McAleenan, who was the Acting Secretary of the Department of Homeland Security during the archetypal Trump administration, became BigBear.ai's CEO this January. McAleenan's assignment sparked hopes for caller authorities contracts -- but its maturation rates were inactive anemic implicit the past fewer years.

From 2021 to 2024, BigBear.ai's yearly gross lone roseate from $146 cardinal to $158 million. Its maturation was throttled by the bankruptcy of its apical lawsuit Virgin Orbit, contention from different AI companies, and different macro headwinds. If it hadn't acquired Pangiam, its three-year compound yearly maturation complaint (CAGR) would astir apt beryllium level oregon negative.

For 2025, it expects gross to diminution 11%-21% to $125-$140 million. It attributes that slowdown to disruptions successful its authorities contracts, peculiarly successful its programs for the U.S. Army, arsenic the national authorities consolidates its information infrastructure. Its backlog besides shrank from $385 cardinal successful the archetypal 4th of 2025 to $376 cardinal successful the 3rd quarter. Its gross borderline besides fell 240 ground points twelvemonth implicit twelvemonth to 22.8% successful the archetypal 9 months of 2025. For 2026, analysts expect its gross to emergence 23% to $164 cardinal arsenic it integrates Ask Sage. But for 2027, they expect its gross to gaffe 2% to $162 cardinal arsenic it laps that acquisition. It's besides expected to enactment unprofitable for the foreseeable future. That grim outlook -- on with its expanding dependence connected acquisitions -- indicates its halfway concern is struggling to grow.