Palantir vs. BigBear.ai: Which Is the Better Artificial Intelligence (AI) Software Stock?

This article by Adam Spatacco compares Palantir Technologies and BigBear.ai using the Rule of 40 metric to evaluate which AI software company offers better investment potential.

Both companies have experienced significant stock price increases this year, with Palantir rising 104% and BigBear.ai up 85%. However, their financial performance tells a different story. The analysis uses the Rule of 40, a key SaaS metric that combines revenue growth rate with profit margins to benchmark software companies. While Palantir achieved an impressive 83% Rule of 40 score with 39% revenue growth and strong profitability, BigBear.ai scored negative 19% due to minimal 5% revenue growth and negative cash flow margins.

• Palantir demonstrates superior financial health with 83% Rule of 40 score versus BigBear.ai's negative 19%
• BigBear.ai shows concerning fundamentals with only 5% revenue growth and negative profit margins
• The Rule of 40 metric effectively reveals the stark performance difference between these AI software companies
• Palantir's success with its Foundry and Gotham AI platforms drives measurable business results compared to BigBear.ai's unproven profitability path