Palantir shows stronger growth than BigBear.ai

The stock market has been unstable, causing many artificial intelligence (AI) stocks to drop in price. Despite this volatility, there are opportunities to invest in promising AI companies at lower prices. Two that stand out are BigBear.ai and Palantir Technologies, both of which provide AI solutions to the U.S. government. BigBear.ai focuses on AI tools for national security. The company helps agencies like the Department of Homeland Security and the Army. In 2024, BigBear.ai's revenue grew slightly to $158.2 million. However, it missed its target of $165 million, raising concerns about its ability to grow in 2025. The company reported a net loss of $257.1 million in 2024, suggesting its financial health is questionable. BigBear.ai recently appointed a new CEO, which might help but also adds a layer of risk. Palantir Technologies also works with government clients, with government sales increasing by 28% to $1.6 billion in 2024. Palantir also earns revenue from commercial businesses, totaling $2.9 billion in revenue for the year. For 2025, the company expects to grow sales to about $3.7 billion. Palantir's AI platform is popular, helping organizations integrate AI into their operations. This generated a net income of $467.9 million in 2024, showing strong financial performance. Comparing the two, Palantir stands out with better sales growth and financial health. BigBear.ai struggles with profitability and high debt. Palantir has substantial assets, including $2.1 billion in cash, which far exceed its liabilities. For now, investors may want to wait for BigBear.ai's first-quarter results before making any decisions. Meanwhile, Palantir's solid growth and financial stability make it the stronger choice for long-term investment. However, potential buyers should monitor its stock price before making a purchase, as it may still be considered high.