Comparing Palantir Technologies (PLTR) & Its Competitors

Palantir Technologies (NASDAQ:PLTR) is one of 955 public companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare Palantir Technologies to similar companies based on the strength of its dividends, valuation, earnings, risk, institutional ownership, analyst recommendations and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Palantir Technologies and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palantir Technologies	3	7	28	1	2.69
Palantir Technologies Competitors	5710	21462	44701	1489	2.57

Palantir Technologies currently has a consensus price target of $208.60, suggesting a potential upside of 6.20%. As a group, “Software” companies have a potential upside of 26.68%. Given Palantir Technologies’ peers higher possible upside, analysts plainly believe Palantir Technologies has less favorable growth aspects than its peers.

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	49.01%	30.57%	25.64%
Palantir Technologies Competitors	-619.02%	18.31%	-8.93%

Risk and Volatility

Palantir Technologies has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Palantir Technologies’ peers have a beta of 1.26, meaning that their average stock price is 26% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Palantir Technologies	$4.48 billion	$1.63 billion	167.88
Palantir Technologies Competitors	$1.80 billion	$385.05 million	112.34

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.

Institutional and Insider Ownership

45.6% of Palantir Technologies shares are held by institutional investors. Comparatively, 41.9% 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.

Summary

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

Palantir Technologies Company Profile

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.