In the evolving technology landscape, Fiserv, Inc. and BigBear.ai Holdings, Inc. stand out as key players in information technology services, each with distinct innovation strategies. Fiserv excels in payment and financial technology solutions, while BigBear.ai focuses on artificial intelligence and advanced analytics for decision support. This comparison highlights their market overlap and growth potential. Join me as we explore which company presents a more compelling opportunity for investors in 2026.
Table of contents
Companies Overview
I will begin the comparison between Fiserv and BigBear.ai by providing an overview of these two companies and their main differences.
Fiserv Overview
Fiserv, Inc. is a global provider of payment and financial services technology, operating through Acceptance, Fintech, and Payments segments. Its offerings include point-of-sale merchant acquiring, mobile payment services, digital banking, card processing, and fraud protection products. Headquartered in Milwaukee, Wisconsin, Fiserv serves businesses, banks, credit unions, and corporate clients worldwide, leveraging a workforce of approximately 38,000 employees.
BigBear.ai Overview
BigBear.ai Holdings, Inc. specializes in artificial intelligence and machine learning solutions for decision support, operating through Cyber & Engineering and Analytics segments. The company provides consulting services in cloud engineering, cybersecurity, big data analytics, and predictive solutions to enhance real-time decision-making. Based in Columbia, Maryland, BigBear.ai employs around 630 people, focusing on technology-driven consulting for government and commercial clients.
Key similarities and differences
Both companies operate in the information technology services sector but differ in scale and focus. Fiserv offers broad financial technology and payment services to a large client base, while BigBear.ai concentrates on AI-driven analytics and consulting services. Fiserv’s large workforce and extensive market presence contrast with BigBear.ai’s specialized, smaller-scale operations and higher beta, indicating greater stock volatility.
Income Statement Comparison
The table below compares key income statement metrics for Fiserv, Inc. and BigBear.ai Holdings, Inc. for the fiscal year 2024, providing a clear view of their financial performance.
| Metric | Fiserv, Inc. (FISV) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| Market Cap | 36.7B | 2.3B |
| Revenue | 20.5B | 158M |
| EBITDA | 8.8B | -258M |
| EBIT | 5.7B | -270M |
| Net Income | 3.1B | -296M |
| EPS | 5.41 | -1.27 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Fiserv, Inc.
Fiserv shows steady revenue growth from $14.85B in 2020 to $20.46B in 2024, with net income rising significantly from $958M to $3.13B. Gross and EBIT margins remain strong and favorable, around 60.8% and 28.1%, respectively. The 2024 year saw a slight revenue growth slowdown to 7.1%, but EBIT increased by 17.2%, indicating improved operational efficiency.
BigBear.ai Holdings, Inc.
BigBear.ai’s revenue increased from $91M in 2020 to $158M in 2024, a 73% growth over five years, but net income remained negative, deepening from -$7.8M to -$296M. Gross margin is favorable at 28.6%, yet EBIT and net margins are substantially negative, reflecting ongoing operating losses. The latest year’s revenue growth slowed to 2%, with a sharp decline in profitability.
Which one has the stronger fundamentals?
Fiserv displays stronger fundamentals with consistent revenue and net income growth, favorable margins, and improving operating profits. In contrast, BigBear.ai, despite revenue expansion, struggles with heavy losses, negative margins, and deteriorating net income. Overall, Fiserv’s income statement metrics suggest more stable and positive financial health compared to BigBear.ai’s unfavorable earnings profile.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Fiserv, Inc. and BigBear.ai Holdings, Inc. based on their most recent fiscal year data for 2024.
| Ratios | Fiserv, Inc. (FISV) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| ROE | 11.57% | 79.58% |
| ROIC | 8.70% | -93.42% |
| P/E | 37.97 | -3.52 |
| P/B | 4.39 | -279.90 |
| Current Ratio | 1.06 | 0.46 |
| Quick Ratio | 1.06 | 0.46 |
| D/E | 0.92 | -39.42 |
| Debt-to-Assets | 32.34% | 42.59% |
| Interest Coverage | 4.75 | -5.20 |
| Asset Turnover | 0.27 | 0.46 |
| Fixed Asset Turnover | 8.62 | 14.61 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
Fiserv, Inc.
Fiserv shows a balanced ratio profile with favorable net margin at 15.31% and a solid WACC of 6.11%, but its price-to-earnings (PE) of 37.97 and price-to-book (PB) of 4.39 are relatively high, signaling valuation concerns. The current ratio is neutral at 1.06, with a strong quick ratio of 1.06. The company does not pay dividends, reflecting either a reinvestment strategy or focus on growth rather than shareholder payouts.
BigBear.ai Holdings, Inc.
BigBear.ai exhibits mostly unfavorable ratios, including a highly negative net margin of -186.78% and weak liquidity with a current ratio of 0.46. However, it has favorable return on equity (ROE) of 7,957.65%, likely due to accounting distortions, and a negative PE ratio that is considered favorable. The company does not pay dividends, consistent with its high growth phase and reinvestment in R&D and acquisitions.
Which one has the best ratios?
Fiserv’s ratios reflect a more stable and mature financial position with a balanced mix of favorable and neutral indicators, despite some valuation concerns. In contrast, BigBear.ai’s ratios reveal significant financial challenges and liquidity issues, with a majority of unfavorable metrics. Overall, Fiserv presents a comparatively stronger ratios profile than BigBear.ai.
Strategic Positioning
This section compares the strategic positioning of Fiserv, Inc. and BigBear.ai Holdings, Inc., including Market position, Key segments, and Exposure to technological disruption:
Fiserv, Inc.
- Large market cap of 37B USD with established competitive pressure in financial technology services.
- Diverse segments: Acceptance, Fintech, Payments driving revenue across payment processing and financial services.
- Moderate exposure with cloud-based platforms and digital payment services, balancing legacy and innovation.
BigBear.ai Holdings, Inc.
- Smaller market cap of 2.3B USD, high volatility with strong competitive pressure in AI and analytics.
- Focused on Cyber & Engineering and Analytics, delivering AI-driven decision support and consulting.
- High exposure to technological disruption through AI, machine learning, and cybersecurity solutions.
Fiserv, Inc. vs BigBear.ai Holdings, Inc. Positioning
Fiserv pursues a diversified strategy across multiple financial tech segments with steady revenue streams, while BigBear.ai concentrates on AI and cybersecurity niches, exposing it to rapid innovation but higher risk. Fiserv’s scale brings stability; BigBear.ai’s focus offers agility but less market breadth.
Which has the best competitive advantage?
Fiserv demonstrates a very favorable moat with growing ROIC and value creation, indicating durable competitive advantage. BigBear.ai shows a very unfavorable moat with declining ROIC, suggesting value destruction and weaker competitive positioning.
Stock Comparison
The stock prices of Fiserv, Inc. and BigBear.ai Holdings, Inc. have shown contrasting dynamics over the past 12 months, with Fiserv experiencing a steep decline while BigBear.ai delivered strong gains but faced recent pullbacks.
Trend Analysis
Fiserv, Inc. exhibited a bearish trend over the past year with a 55.23% price decline, accelerating downward from a high of 235.69 to a low of 60.84, despite a minor recent 1.21% positive shift. BigBear.ai Holdings, Inc. showed a bullish trend with a 221.03% overall increase, though recent months saw a 9.54% decrease indicating deceleration from its 9.02 peak. Comparing both, BigBear.ai outperformed Fiserv significantly in market performance despite recent volatility and seller dominance in volume.
Target Prices
The current analyst consensus reveals a wide range of expectations for Fiserv, Inc., while BigBear.ai Holdings, Inc. shows a uniform target.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Fiserv, Inc. | 180 | 62 | 111.39 |
| BigBear.ai Holdings, Inc. | 6 | 6 | 6 |
Fiserv’s consensus target price of 111.39 USD suggests significant upside compared to its current 67.5 USD price. BigBear.ai’s fixed target at 6 USD is slightly below its current 6.26 USD price, indicating limited near-term growth expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Fiserv, Inc. and BigBear.ai Holdings, Inc.:
Rating Comparison
Fiserv, Inc. Rating
- Rating: B+ indicating a very favorable overall assessment of financial standing.
- Discounted Cash Flow Score: 5, very favorable, signaling attractive cash flow prospects.
- ROE Score: 4, favorable, showing efficient profit generation from equity.
- ROA Score: 3, moderate, indicating average asset utilization efficiency.
- Debt To Equity Score: 1, very unfavorable, implying higher financial risk due to debt.
- Overall Score: 3, moderate, representing an average combined financial score.
BigBear.ai Holdings, Inc. Rating
- Rating: C- suggesting a very unfavorable overall financial assessment.
- Discounted Cash Flow Score: 1, very unfavorable, indicating weak cash flow outlook.
- ROE Score: 1, very unfavorable, reflecting poor profit generation from equity.
- ROA Score: 1, very unfavorable, showing ineffective asset utilization.
- Debt To Equity Score: 3, moderate, reflecting a balanced debt to equity position.
- Overall Score: 1, very unfavorable, indicating weak overall financial health.
Which one is the best rated?
Based strictly on the data, Fiserv, Inc. is better rated with a B+ rating and stronger scores in discounted cash flow, ROE, and ROA. BigBear.ai holds weaker ratings and scores, except for a more moderate debt-to-equity score.
Scores Comparison
A comparison of the Altman Z-Score and Piotroski Score for Fiserv, Inc. and BigBear.ai Holdings, Inc.:
Fiserv, Inc. Scores
- Altman Z-Score: 1.41, in the distress zone, indicating high bankruptcy risk.
- Piotroski Score: 7, categorized as strong financial health.
BigBear.ai Holdings, Inc. Scores
- Altman Z-Score: 2.93, in the grey zone, indicating moderate bankruptcy risk.
- Piotroski Score: 3, categorized as very weak financial health.
Which company has the best scores?
Fiserv, Inc. has a lower Altman Z-Score indicating higher financial distress but a strong Piotroski Score. BigBear.ai has a better Altman Z-Score but a very weak Piotroski Score. Overall, their scores reflect different financial health aspects.
Grades Comparison
Here is a comparison of recent and reliable grades for Fiserv, Inc. and BigBear.ai Holdings, Inc.:
Fiserv, Inc. Grades
This table shows recent grades and rating actions from major financial institutions for Fiserv, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Tigress Financial | Maintain | Buy | 2025-12-31 |
| Mizuho | Maintain | Outperform | 2025-12-22 |
| Goldman Sachs | Downgrade | Neutral | 2025-10-30 |
| Bernstein | Downgrade | Market Perform | 2025-10-30 |
| Argus Research | Downgrade | Hold | 2025-10-30 |
| Morgan Stanley | Downgrade | Equal Weight | 2025-10-30 |
| Truist Securities | Downgrade | Hold | 2025-10-30 |
| JP Morgan | Maintain | Overweight | 2025-10-30 |
| Citigroup | Maintain | Neutral | 2025-10-30 |
| RBC Capital | Maintain | Outperform | 2025-10-30 |
Fiserv, Inc. shows a mixed trend with several recent downgrades from Buy/Outperform to Neutral/Hold, though some firms maintain positive ratings.
BigBear.ai Holdings, Inc. Grades
This table shows recent grades and rating actions from financial institutions 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 Holdings, Inc. maintains mostly Buy and Overweight ratings, with only one recent downgrade to Neutral by Cantor Fitzgerald.
Which company has the best grades?
Fiserv, Inc. has experienced several downgrades recently, indicating some caution among analysts, while BigBear.ai Holdings, Inc. maintains predominantly Buy ratings with fewer downgrades. This contrast may influence investor sentiment differently regarding risk and growth expectations.
Strengths and Weaknesses
Below is a comparative overview of Fiserv, Inc. (FISV) and BigBear.ai Holdings, Inc. (BBAI) focusing on key financial and strategic criteria:
| Criterion | Fiserv, Inc. (FISV) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| Diversification | Strong diversification with multiple segments including processing, payments, fintech, and hardware production generating over $20B in revenue | Limited diversification, primarily focused on analytics and cyber sectors with $158M revenue |
| Profitability | Positive net margin at 15.31%, ROIC above WACC indicating value creation and growing profitability | Negative net margin at -186.78%, ROIC well below WACC, indicating value destruction and declining profitability |
| Innovation | Moderate innovation with stable software maintenance and professional services segments | High innovation potential in AI-driven analytics and cyber security, but financials reflect early-stage challenges |
| Global presence | Large global footprint with extensive financial services network | Smaller scale with more niche market presence, primarily US-focused |
| Market Share | Significant market share in financial technology and payment processing sectors | Small market share as an emerging player in AI and analytics markets |
Key takeaways: Fiserv demonstrates a durable competitive advantage with strong diversification, profitability, and global reach, making it a safer investment. BigBear.ai, while innovative, is currently financially unstable with shrinking returns, posing higher risk for investors.
Risk Analysis
Below is a comparative table outlining key risk factors for Fiserv, Inc. (FISV) and BigBear.ai Holdings, Inc. (BBAI) based on the most recent 2024 data:
| Metric | Fiserv, Inc. (FISV) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| Market Risk | Moderate (Beta 0.80) | High (Beta 3.21) |
| Debt Level | Moderate (D/E 0.92) | Moderate (D/E Negative*, 42.6% Debt-to-Assets) |
| Regulatory Risk | Moderate | Moderate to High (AI sector scrutiny) |
| Operational Risk | Moderate | High (Smaller scale, growth phase) |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Moderate |
*Note: Negative debt-to-equity ratio for BBAI reflects accounting nuances but debt-to-assets is more indicative of leverage.
Fiserv shows a balanced profile with moderate market and operational risks but is financially stable, albeit in the distress zone per Altman Z-Score. BigBear.ai faces higher market volatility and operational risks due to its smaller size, high beta, and weak profitability. The most impactful risks for investors are BBAI’s financial instability and high market risk versus FISV’s moderate leverage and distress-zone financial health. Caution with BBAI is advised given its unfavorable financial ratios and weak cash flow outlook.
Which Stock to Choose?
Fiserv, Inc. (FISV) shows a favorable income evolution with a 37.73% revenue growth over 2020-2024 and 226.83% net income growth. Its financial ratios are globally neutral, supported by a strong moat and a very favorable rating of B+. Debt levels are moderate with a neutral debt-to-equity ratio.
BigBear.ai Holdings, Inc. (BBAI) presents an unfavorable income profile, marked by negative net margin and declining profitability despite 73.28% revenue growth. Its financial ratios are mostly unfavorable, with a very unfavorable moat status and a low rating of C-. The company carries a higher risk profile with weak liquidity and negative interest coverage.
For investors, FISV might appear more suitable for those prioritizing quality and stable profitability given its durable competitive advantage and favorable rating. Conversely, BBAI could be interpreted as fitting for risk-tolerant investors seeking high-growth potential despite financial instability.
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 Fiserv, Inc. and BigBear.ai Holdings, Inc. to enhance your investment decisions:
