The Motley Foolยท2025-06-24 08:40Group 1: C3.ai - C3.ai has shown strong growth with four consecutive quarters of over 20% revenue increases, despite its stock trading at a lower price-to-sales (P/S) multiple compared to Palantir [3][7] - The company provides enterprise AI software for large projects, utilizing large language models and generative AI for applications such as fraud detection and supply chain management [4] - A significant portion of C3.ai's revenue comes from federal and defense contracts, with 26% of bookings in fiscal 2025 attributed to this sector, raising concerns about customer concentration [5] - Revenue, excluding business with Baker Hughes, grew 37% year over year last quarter, indicating potential for strong growth and improving profitability [6] - The stock's P/S of 8 is more attractive than Palantir's 111, making it a potential investment opportunity based on its revenue growth [7] Group 2: BigBear.ai - BigBear.ai has experienced a 200% increase in stock price over the last year, but its revenue growth has been modest at just 5% year over year in the most recent quarter [8][9] - Annual sales have only increased from $145 million in 2021 to $158 million in 2024, indicating a need for stronger revenue growth to sustain stock performance [9] - The company has deployed AI solutions for major airports and acquired Pangiam, enhancing its capabilities in facial recognition and biometrics [10] - BigBear.ai faces risks related to its dependency on government spending, which could be affected by budget cuts [11] - The company reports negative cash flow from operations and carries $100 million in long-term debt, which raises concerns about its financial health [12] - With a current market cap of $1.15 billion and a P/S of 6.1, there is potential for upside if the company can expand beyond government contracts [13]