Head to Head Review: Palantir Technologies (PLTR) & The Competition

Palantir Technologies (NASDAQ:PLTR) is one of 953 public companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare Palantir Technologies to related companies based on the strength of its analyst recommendations, profitability, risk, dividends, valuation, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings for Palantir Technologies and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palantir Technologies	3	8	27	1	2.67
Palantir Technologies Competitors	5729	21451	44732	1492	2.57

Palantir Technologies currently has a consensus price target of $214.27, suggesting a potential upside of 22.16%. As a group, “Software” companies have a potential upside of 27.74%. Given Palantir Technologies’ peers higher possible upside, analysts clearly believe Palantir Technologies has less favorable growth aspects than its peers.

Risk and Volatility

Palantir Technologies has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, Palantir Technologies’ peers have a beta of 1.19, indicating that their average share price is 19% more volatile than the S&P 500.

Institutional and Insider Ownership

45.6% of Palantir Technologies shares are held by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are held by institutional investors. 9.5% of Palantir Technologies shares are held by company insiders. Comparatively, 19.8% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Palantir Technologies and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Palantir Technologies	$4.48 billion	$1.63 billion	149.91
Palantir Technologies Competitors	$1.80 billion	$385.91 million	110.06

Palantir Technologies has higher revenue and earnings than its peers. Palantir Technologies is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Palantir Technologies and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palantir Technologies	50.34%	32.87%	27.69%
Palantir Technologies Competitors	-612.70%	20.86%	-8.99%

Summary

Palantir Technologies beats its peers on 11 of the 13 factors compared.

About Palantir Technologies

Palantir Technologies, Inc. engages in the business of building and deploying software platforms that serve as the central operating systems for its customers. It operates under the Commercial and Government segments. The Commercial segment focuses on customers working in non-government industries. The Government segment is involved in providing services to customers that are the United States government and non-United States government agencies. The company was founded by Alexander Ceadmon Karp, Peter Andreas Thiel, Stephen Cohen, and Nathan Dale Gettings in 2003 and is headquartered in Denver, CO.