In the fast-evolving world of information technology services, CDW Corporation and BigBear.ai Holdings, Inc. stand out for their distinct yet overlapping offerings. CDW, a seasoned IT solutions provider, delivers comprehensive hardware and software services, while BigBear.ai focuses on cutting-edge artificial intelligence and analytics. Comparing these companies reveals insights into traditional IT infrastructure versus innovative AI-driven strategies. Let’s explore which presents a more compelling investment opportunity today.
Table of contents
Companies Overview
I will begin the comparison between CDW Corporation and BigBear.ai Holdings, Inc. by providing an overview of these two companies and their main differences.
CDW Corporation Overview
CDW Corporation delivers information technology solutions across the US, UK, and Canada. It operates through Corporate, Small Business, and Public segments, offering a broad range of hardware, software, and integrated IT services including cloud, security, and networking. Founded in 1984 and headquartered in Vernon Hills, Illinois, CDW serves government, education, healthcare, and business customers with a workforce of 15,100 employees.
BigBear.ai Holdings, Inc. Overview
BigBear.ai Holdings, Inc. specializes in artificial intelligence and machine learning for decision support, operating two segments: Cyber & Engineering and Analytics. It focuses on cloud engineering, cybersecurity, big data computing, and predictive analytics to enhance real-time decision-making. Founded recently and based in Columbia, Maryland, BigBear.ai employs 630 professionals and serves clients primarily in technology-driven sectors.
Key similarities and differences
Both companies operate in the technology sector within the information technology services industry. CDW provides a wide range of IT hardware and software solutions along with managed services, while BigBear.ai concentrates on AI-driven analytics and cybersecurity consulting. CDW’s extensive market presence and larger workforce contrast with BigBear.ai’s specialized focus on advanced analytics and smaller scale of operations.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for CDW Corporation and BigBear.ai Holdings, Inc. for the fiscal year 2024.
| Metric | CDW Corporation | BigBear.ai Holdings, Inc. |
|---|---|---|
| Market Cap | 17.2B | 2.3B |
| Revenue | 21.0B | 158M |
| EBITDA | 1.93B | -258M |
| EBIT | 1.65B | -270M |
| Net Income | 1.08B | -296M |
| EPS | 8.06 | -1.27 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
CDW Corporation
CDW Corporation’s revenue showed a favorable overall growth of 13.7% from 2020 to 2024, with net income increasing by 36.7%. Gross and net margins improved over the period, reflecting efficient cost management. However, in 2024, revenue and net income declined slightly by 1.8% and 2.5%, respectively, alongside a small dip in margins, signaling a mild slowdown in growth momentum.
BigBear.ai Holdings, Inc.
BigBear.ai experienced strong revenue growth overall, increasing by 73.3% from 2020 to 2024. Despite this, net income remained negative and deteriorated significantly, with net losses widening dramatically. Margins were unfavorable, especially EBIT and net margins, which declined sharply. The most recent year showed a modest 2% revenue increase but steep declines in profitability and earnings per share.
Which one has the stronger fundamentals?
CDW Corporation exhibits stronger fundamentals with consistent profitability, positive net income growth, and stable margins despite a slight recent decline. In contrast, BigBear.ai, while growing revenue, struggles with large and increasing losses, negative margins, and unfavorable earnings trends. CDW’s financial performance presents a more balanced income statement with favorable indicators overall.
Financial Ratios Comparison
The table below presents a comparison of key financial ratios for CDW Corporation and BigBear.ai Holdings, Inc. based on their most recent fiscal year data ending 2024.
| Ratios | CDW Corporation | BigBear.ai Holdings, Inc. |
|---|---|---|
| ROE | 45.8% | 79.6% |
| ROIC | 13.1% | -93.4% |
| P/E | 21.6 | -3.52 |
| P/B | 9.90 | -279.9 |
| Current Ratio | 1.35 | 0.46 |
| Quick Ratio | 1.24 | 0.46 |
| D/E | 2.55 | -39.4 |
| Debt-to-Assets | 40.8% | 42.6% |
| Interest Coverage | 7.70 | -5.20 |
| Asset Turnover | 1.43 | 0.46 |
| Fixed Asset Turnover | 67.3 | 14.6 |
| Payout ratio | 30.8% | 0% |
| Dividend yield | 1.43% | 0% |
Interpretation of the Ratios
CDW Corporation
CDW shows a balanced ratio profile with favorable returns on equity (45.81%) and invested capital (13.13%), along with a slightly favorable global ratio opinion. Concerns arise from an unfavorable price-to-book ratio (9.9) and debt-to-equity of 2.55. The company pays dividends with a neutral yield of 1.43%, supported by consistent free cash flow coverage, indicating moderate shareholder returns.
BigBear.ai Holdings, Inc.
BigBear.ai presents mixed ratios with a highly volatile return on equity of 7,957.65% but unfavorable net margin (-186.78%) and return on invested capital (-93.42%). Liquidity ratios are weak, with a current ratio of 0.46, and no dividends are paid due to negative earnings and reinvestment focus. The company prioritizes growth and R&D, reflected in its financial structure and cash flow challenges.
Which one has the best ratios?
CDW exhibits a stronger and more stable ratio profile, benefiting from solid profitability, liquidity, and moderate leverage, while delivering shareholder returns through dividends. In contrast, BigBear.ai’s ratios indicate high risk with negative profitability and liquidity weaknesses, reflecting an unfavorable overall financial position despite some favorable valuation metrics.
Strategic Positioning
This section compares the strategic positioning of CDW Corporation and BigBear.ai Holdings, Inc., including market position, key segments, and exposure to technological disruption:
CDW Corporation
- Large market cap of $17.2B with established presence in IT services facing moderate competitive pressure.
- Diverse segments: Corporate, Small Business, Public; hardware, software, and services drive revenues.
- Moderate exposure to disruption; integrates cloud, hybrid, and on-premise IT solutions with broad scope.
BigBear.ai Holdings, Inc.
- Smaller $2.3B market cap with higher volatility and intense competitive pressure in specialized AI services.
- Focused on AI-driven Cyber & Engineering and Analytics segments, specializing in decision support solutions.
- High exposure to technological disruption due to reliance on advanced AI, machine learning, and analytics.
CDW Corporation vs BigBear.ai Holdings, Inc. Positioning
CDW’s diversified portfolio across hardware, software, and services offers broad market coverage but faces moderate disruption risk. BigBear.ai concentrates on AI and analytics, targeting niche decision-support markets but with higher technological disruption exposure and smaller scale.
Which has the best competitive advantage?
CDW shows a slightly favorable moat with value creation despite declining profitability, indicating moderate competitive advantage. BigBear.ai has a very unfavorable moat, destroying value with declining returns, reflecting weak competitive positioning.
Stock Comparison
The stock price chart highlights significant divergences in price movements over the past 12 months, with CDW Corporation exhibiting a sharp decline and BigBear.ai Holdings, Inc. showing strong gains despite recent downward pressure.
Trend Analysis
CDW Corporation experienced a bearish trend over the past year with a -46.52% price change, showing deceleration and high volatility with a standard deviation of 33.89. The highest price reached was 255.78, and the lowest was 132.16.
BigBear.ai Holdings, Inc. demonstrated a bullish trend over the past year with a 221.03% price increase, also decelerating but with much lower volatility at a standard deviation of 2.19. The stock peaked at 9.02 and bottomed at 1.21.
Comparing both, BigBear.ai Holdings delivered the highest market performance with a strong positive return, while CDW Corporation faced substantial declines over the same period.
Target Prices
The current analyst target price consensus for these companies indicates differing outlooks.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CDW Corporation | 190 | 148 | 175 |
| BigBear.ai Holdings, Inc. | 6 | 6 | 6 |
Analysts expect CDW Corporation’s stock to appreciate significantly from its current price of $132.16, while BigBear.ai Holdings, Inc.’s consensus target is slightly below its current price of $6.26.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for CDW Corporation and BigBear.ai Holdings, Inc.:
Rating Comparison
CDW Rating
- Rating: B, evaluated as Very Favorable
- Discounted Cash Flow Score: 4, considered Favorable
- ROE Score: 5, rated Very Favorable for efficient profit generation
- ROA Score: 4, evaluated as Favorable for asset utilization
- Debt To Equity Score: 1, rated Very Unfavorable due to higher financial risk
- Overall Score: 3, rated Moderate
BBAI Rating
- Rating: C-, surprisingly rated Very Favorable
- Discounted Cash Flow Score: 1, considered Very Unfavorable
- ROE Score: 1, rated Very Unfavorable for weak equity returns
- ROA Score: 1, rated Very Unfavorable for poor asset efficiency
- Debt To Equity Score: 3, rated Moderate indicating more balanced financial leverage
- Overall Score: 1, rated Very Unfavorable
Which one is the best rated?
Based strictly on the provided data, CDW holds stronger ratings and higher scores in key metrics such as DCF, ROE, and ROA, despite a weak debt-to-equity score. BBAI’s ratings and scores are generally lower, except for a better debt-to-equity score. Overall, CDW is better rated.
Scores Comparison
Here is the comparison of the Altman Z-Score and Piotroski Score for both companies:
CDW Scores
- Altman Z-Score: 2.68, indicating moderate bankruptcy risk in the grey zone.
- Piotroski Score: 6, reflecting average financial strength.
BBAI Scores
- Altman Z-Score: 2.93, also in the grey zone with moderate bankruptcy risk.
- Piotroski Score: 3, indicating very weak financial strength.
Which company has the best scores?
Based strictly on the provided data, BBAI has a slightly better Altman Z-Score than CDW, both in the grey zone. However, CDW’s Piotroski Score is significantly higher, indicating stronger financial health overall.
Grades Comparison
Here is a comparison of recent reliable grades for CDW Corporation and BigBear.ai Holdings, Inc.:
CDW Corporation Grades
The following table summarizes recent grades assigned by reputable firms for CDW Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Overweight | 2025-12-17 |
| Raymond James | Upgrade | Strong Buy | 2025-11-25 |
| Barclays | Maintain | Equal Weight | 2025-11-05 |
| UBS | Maintain | Buy | 2025-11-05 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-20 |
| UBS | Maintain | Buy | 2025-08-07 |
| Barclays | Maintain | Equal Weight | 2025-08-07 |
| JP Morgan | Maintain | Neutral | 2025-07-17 |
| Citigroup | Maintain | Neutral | 2025-07-11 |
| Barclays | Maintain | Equal Weight | 2025-05-08 |
The overall grading trend for CDW Corporation shows a stable to positive outlook, with upgrades and predominantly buy or outperform ratings.
BigBear.ai Holdings, Inc. Grades
The following table presents recent grades assigned by credible firms for BigBear.ai Holdings, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Cantor Fitzgerald | Downgrade | Neutral | 2026-01-07 |
| HC Wainwright & Co. | Maintain | Buy | 2025-11-11 |
| HC Wainwright & Co. | Maintain | Buy | 2025-08-12 |
| HC Wainwright & Co. | Maintain | Buy | 2025-07-01 |
| HC Wainwright & Co. | Maintain | Buy | 2025-03-07 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-03-07 |
| HC Wainwright & Co. | Maintain | Buy | 2024-12-30 |
| HC Wainwright & Co. | Maintain | Buy | 2024-11-06 |
| HC Wainwright & Co. | Maintain | Buy | 2024-10-15 |
| Cantor Fitzgerald | Maintain | Overweight | 2024-08-21 |
BigBear.ai’s grading trend shows consistent buy ratings from HC Wainwright & Co., but a recent downgrade to neutral from Cantor Fitzgerald signals some caution.
Which company has the best grades?
CDW Corporation holds a stronger consensus with multiple buy and outperform grades, including a recent upgrade to strong buy, reflecting greater analyst confidence. BigBear.ai displays mostly buy ratings but a recent downgrade to neutral suggests increased risk. Investors might view CDW as having more robust support from analysts.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for CDW Corporation and BigBear.ai Holdings, Inc., based on their most recent financial and operational data.
| Criterion | CDW Corporation | BigBear.ai Holdings, Inc. |
|---|---|---|
| Diversification | Highly diversified with strong hardware (15.2B), software (3.8B), and services (1.9B) segments | Limited diversification; single reportable segment at 158M in 2024 |
| Profitability | Favorable ROIC of 13.1%, positive net margin (5.1%), stable profitability | Negative ROIC (-93.4%), negative net margin (-186.8%), indicating value destruction |
| Innovation | Moderate innovation focus, steady software product revenue | High innovation potential in AI/analytics but financials show instability |
| Global presence | Strong presence in private and public sectors across North America | Smaller scale, primarily domestic with niche AI/analytics focus |
| Market Share | Large market share in IT hardware/software distribution | Emerging player in AI analytics with limited market penetration |
Key takeaways: CDW Corporation demonstrates solid diversification, profitability, and market presence, making it a relatively safer investment. BigBear.ai shows promise in innovation but suffers from severe financial instability and limited scale, posing higher risks for investors.
Risk Analysis
Below is a comparison of key risks for CDW Corporation and BigBear.ai Holdings, Inc. based on the most recent 2024 data.
| Metric | CDW Corporation | BigBear.ai Holdings, Inc. |
|---|---|---|
| Market Risk | Moderate beta (1.07), stable IT services market exposure | High beta (3.21), volatile AI/analytics sector exposure |
| Debt level | High debt-to-equity (2.55, unfavorable), 40.8% debt/assets | Negative debt/equity (-39.42, favorable), 42.6% debt/assets |
| Regulatory Risk | Moderate, subject to IT and data security regulations | Elevated, due to AI tech and government contracts |
| Operational Risk | Medium; large workforce (15.1K) and diverse product lines | High; smaller team (630) with fast-changing technology demands |
| Environmental Risk | Low; IT services have limited direct environmental impact | Low; primarily software-focused |
| Geopolitical Risk | Moderate; operates in US, UK, Canada | Moderate; US-based with government sector focus |
The most impactful risks are CDW’s elevated debt level and regulatory compliance in multiple jurisdictions, while BigBear.ai faces higher market volatility and operational challenges tied to AI technology adoption. Both firms exhibit moderate financial distress risk per Altman Z-scores in the grey zone, suggesting cautious monitoring is prudent.
Which Stock to Choose?
CDW Corporation shows a favorable income statement overall, with a 13.71% revenue growth over 2020-2024 and a 36.69% net income increase. Financial ratios are slightly favorable, featuring a 45.81% ROE, 13.13% ROIC, and manageable debt levels, though some metrics like debt-to-equity are unfavorable. Its credit rating is very favorable.
BigBear.ai Holdings, Inc. presents an unfavorable income statement with negative net margin and declining profitability despite a 73.28% revenue growth over the period. Its financial ratios are mostly unfavorable, including a negative ROIC and low liquidity ratios, though it has a very favorable overall rating. The company is currently shedding value with declining profitability.
Considering ratings and financial evaluations, CDW might appear more suitable for investors seeking stable value creation and profitability, while BigBear.ai could be seen as fitting for those with a tolerance for higher risk and a focus on revenue growth potential. The investment outlook depends on the investor’s risk appetite and strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of CDW Corporation and BigBear.ai Holdings, Inc. to enhance your investment decisions:
