From Nasdaq: 2025-04-30 12:08:00

Innodata (INOD) and BigBear.ai Holdings (BBAI) are gaining attention in the AI space for their different business models. INOD saw record financial results in 2024, with revenues almost doubling to $170.5 million. BBAI focuses on decision intelligence for government and enterprise clients, with a growing contract backlog reaching $418 million by 2024.

INOD’s Generative AI Test & Evaluation Platform, developed with Nvidia, addresses enterprise concerns over AI risk and bias. INOD benefits from strategic relationships with tech giants like Microsoft, Alphabet, and Amazon, who are expected to invest $325 billion in AI infrastructure in 2025. However, nearly half of INOD’s revenues came from a single customer in 2024.

BBAI specializes in defense, intelligence, logistics, and cybersecurity solutions, with a focus on government contracts. While the company has shown strong growth and strategic alliances, it reported a $108 million net loss in Q4 2024 due to non-cash charges. BBAI’s reliance on government contracts and convertible debt adds financial complexity and risk.

INOD and BBAI have seen impressive stock price performance in the past six months, with BBAI shares surging 125.2% and INOD shares rallying 86.8%. INOD’s forward P/S multiple is slightly above its median, while BBAI’s is well above its median. INOD shows strong financial momentum and early leadership in generative AI, while BBAI’s niche positioning and contract pipeline offer strategic value.

Investors can access all Zacks’ picks for $1 to explore opportunities in the AI sector. INOD’s Zacks Rank is #3 (Hold), while BBAI’s is #4 (Sell). INOD offers potential growth with strong financials and partnerships, while BBAI’s niche focus and government contracts provide strategic value amid financial challenges.



Read more at Nasdaq: Innodata vs. BigBear.ai: Which AI Stock Offers Bigger Upside in 2025?