From Nasdaq: 2025-05-14 08:29:00

Zacks.com Analyst Blog highlights C3.ai (AI) and UiPath (PATH) as top AI automation stocks. C3.ai focuses on enterprise AI applications, while UiPath leads in robotic process automation. Both show promise amidst the AI hype, with C3.ai growing faster and UiPath having more stable financials.

C3.ai’s strengths lie in its leadership in enterprise AI, with revenues growing by 26% year over year. The company faces challenges in achieving sustainable profitability and competition from established players and startups.

UiPath excels in robotic process automation, reporting revenues of $1.43 billion in fiscal 2025 with a focus on profitability and strong cash flow. However, revenue growth has slowed, and competition remains fierce.

PATH stock has outperformed AI in 2025, with a forward P/S ratio of 4.63X, lower than the sector average. C3.ai is riskier with higher valuations, while UiPath offers a more balanced investment profile.

Both C3.ai and UiPath offer potential in the AI automation space, but their risk/reward profiles differ. C3.ai has higher growth potential but is unprofitable, while UiPath is larger, almost cash-flow positive, and profitable on a non-GAAP basis.

In conclusion, C3.ai offers higher growth potential but comes with higher risk, while UiPath has a more proven business model and easier to justify valuation. UiPath appears to offer better upside potential in 2025, with a Zacks Rank #3 (Hold) compared to C3.ai’s Zacks Rank #4 (Sell).



Read more at Nasdaq: The Zacks Analyst Blog Highlights C3.ai, UiPath, Microsoft, Alphabet and Amazon