To be clear, what BigBear.ai (BBAI) does is nothing like what One Stop Systems (OSS) does. BBAI is not in the same league as OSS. We are only comparing BBAI to OSS because they are the only two publicly traded military/defense focused AI companies.
BBAI has just hit $3.50 due to people chasing momentum. BBAI has 250.59 million shares outstanding for a market cap of $877.065 million and has net debt of $130.16 million for an enterprise value of $1.007 billion or 6.50X revenue of $154.97 million.
Even though BBAI is a "software" company that YouTubers are pumping as the next Palantir, software companies like Palantir typically have high gross margins of 80%.
BBAI's gross margins are only 26%. Despite OSS being an AI hardware company that creates ruggedized AI servers for defense contractors, OSS has had higher gross margins than BBAI for 12 of the last 16 quarters!
BBAI may have revenue growth of 22.12% last quarter but dilution of 59.32% year-to-date means BBAI's revenue is declining dramatically on a per share basis!
OSS's revenue bottomed in 1Q 2024 at $12.65 million and has since grown to $13.20 million in 2Q 2024, $13.70 million in 3Q 2024, and is estimated to reach $15 million in 4Q 2024!
OSS is a one-of-a-kind AI company because only OSS has technology that allows Nvidia GPUs to be used in unmanned surface vessels (USV) for autonomous military missions. USVs operate in harsh environments with high levels of ambient temperature, moisture, and corrosion, while requiring Enterprise Class compute power to operate autonomously, intelligently and safely. Super Micro (SMCI) must have a perfectly clean air-conditioned server room for its equipment to function properly, which is why OSS has been dominating SMCI in share price performance ever since NIA's initial February 13th suggestion at $2.16 per share.
OSS remains undiscovered by the investment community. Once a wider audience of investors who are currently buying BBAI, discover and begin buying OSS next week, we will immediately see OSS become the #1 most talked about AI company.
With OSS set to generate revenue of $15 million this quarter or $60 million annualized an enterprise value of 6.50X revenue to match BBAI would give OSS an enterprise value of $390 million. OSS has a net cash position of $11.466 million so OSS would deserve a market cap of $401.47 million to match the same multiple of BBAI. OSS only has 21.11 million shares outstanding so this would value OSS at $19+ per share.
Augusta Gold (TSX: G) is the only company left with a fully permitted gold project in a Tier 1 U.S. gold district that is about to be developed making it a one-of-a-kind publicly traded gold company.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA's President has purchased 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
