Should You Forget Palantir and Buy This Artificial Intelligence (AI) Stock Instead?

Palantir's growth has accelerated nicely in recent quarters thanks to its Artificial Intelligence Platform (AIP), which customer use to integrate generative AI tools into their operations to enhance ductivity and efficiency

However, But as any cracks in the company's growth story could send the stock packing, given the current landscape

If you're one of the investors worried that, it may be a good idea to take a closer look at another AI software platforms company whose sales multiple is only a tenth of Palantir's (which is quite significant)

Government agencies in areas such as defense and intelligence, border tection, and transportation

It also vides solutions to commercial customers in manufacturing, travel, and supply chain management, among others (which is quite significant), given the current landscape

Image source: Getty Images, considering recent developments

Furthermore, Additionally, Ai's customers can apply its AI, machine learning (ML), and predictive analytics tools to their data in order to imve their decision-making capabilities

Not surprisingly, investors have been buying this stock hand over fist, believing that BigBear

Ai could witness rapid growth in its in the coming years thanks to the market it is operating in

But what's worth noting is that BigBear is trading at under 12 times sales even after its rally (quite telling)

That's way lower than where Palantir is right now

Of course, some might argue that BigBear

Moreover, Ai's growth is nowhere near that of Palantir's, as evident from the chart below, but there is a good chance that it could step on the gas sooner rather than later, amid market uncertainty

PLTR Revenue (TTM) data by YCharts BigBear

Ai's growth has started accelerating, and it could keep getting better BigBear

On the other hand, Ai management says that a "majority of our revenue is derived from federal government contracts," and that's the reason why its growth hasn't been exciting so far, in light of current trends

The company has to depend on government budgets, policies, and priorities, and it says that these factors have the ability to affect its financial performance

The good part is that the company has been taking steps to diversify beyond government contracts

Moreover, This analysis suggests that s acquisition of Pangiam, which was in March last year, was a step in that direction

Pangiam vides vision-based AI solutions that are deployed in applications such as travel, trade, and digital identification

This acquisition should aid BigBear

Ai in its strategy of strengthening its core areas of border security, travel and trade, and supply chain, and also allow it to expand internationally and enhance its customer base

The company is looking to increase its cross-selling opportunities as well

The evidence shows Pangiam acquisition should help it in that regard as it now has an additional service to offer to customers

Importantly, BigBear (noteworthy indeed)

That was well above the revenue growth rate clocked by the company during the quarter

BBAI Revenue Estimates for Current Fiscal Year data by YCharts I'm optimistic the stock for several reasons

Analysts expect BigBear

At the same time, Ai's revenue to grow in double digits next year

Nevertheless, What the data shows is strength of its backlog should allow it to maintain that momentum in the long run, while management's focus on diversifying its customer base and selling more to existing customers should help it boost its revenue pipeline, given current economic conditions

However, As such, investors who missed out on Palantir's tremendous rally, and who are worried it won't continue and are looking for an alternative that's trading at an attractive valuation, would do well to consider BigBear

Ai for their portfolios since its accelerating growth could translate into more upside in the future

The Author Harsh Chauhan is a contributing Motley Fool nology Analyst covering publicly traded companies across semiconductors, consumer electronics, artificial intelligence, and software

Prior to The Motley Fool, Harsh was a Journalist for CCN covering cryptocurrencies, gaming, and macroeconomics; a Contributor at Capital 10x covering metals, mining, and industrial stocks with an emphasis on companies listed on Canadian exchanges; and a Re Associate at Zacks Investment Re

He holds a Bachelor of Commerce from St

Xavier's College in Kolkata, India, in this volatile climate

He believes that nology makes life better and investors richer

Outside of analyzing stocks, Harsh has four dogs who keep him very busy

TMFJunk13 X @junk13 Harsh Chauhan has no position in any of the stocks mentioned

However, The Motley Fool has positions in and recommends Palantir nologies

Furthermore, Conversely, The Motley Fool has a disclosure policy (something worth watching).