Head-To-Head Analysis: Expensify (NASDAQ:EXFY) and Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies (NASDAQ:PLTR) and Expensify (NASDAQ:EXFY) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

45.6% of Palantir Technologies shares are owned by institutional investors. Comparatively, 68.4% of Expensify shares are owned by institutional investors. 9.5% of Palantir Technologies shares are owned by company insiders. Comparatively, 11.7% of Expensify shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Palantir Technologies and Expensify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palantir Technologies	50.34%	30.49%	25.71%
Expensify	-12.23%	-12.25%	-8.85%

Volatility and Risk

Palantir Technologies has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Expensify has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Palantir Technologies and Expensify, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palantir Technologies	3	7	28	1	2.69
Expensify	1	0	2	0	2.33

Palantir Technologies presently has a consensus price target of $216.20, indicating a potential upside of 28.70%. Expensify has a consensus price target of $3.00, indicating a potential upside of 63.04%. Given Expensify’s higher possible upside, analysts plainly believe Expensify is more favorable than Palantir Technologies.

Valuation and Earnings

This table compares Palantir Technologies and Expensify”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palantir Technologies	$4.48 billion	90.20	$1.63 billion	$1.43	117.48
Expensify	$142.10 million	1.04	-$21.39 million	($0.18)	-10.22

Palantir Technologies has higher revenue and earnings than Expensify. Expensify is trading at a lower price-to-earnings ratio than Palantir Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Palantir Technologies beats Expensify on 11 of the 15 factors compared between the two stocks.

About Palantir Technologies

Palantir Technologies is a software company that develops platforms for integrating, analyzing and using data to support operational decisions. Its products are designed to help organizations work with large, complex datasets while managing access and security. The company’s platforms include Gotham, used primarily by government and intelligence customers; Foundry, designed for commercial and other organizations; Apollo, which supports the deployment and management of software; and Artificial Intelligence Platform (AIP), which helps organizations use artificial intelligence with their data and operations.

About Expensify

Expensify, Inc. develops cloud-based software for business expense management. Its platform helps organizations capture and categorize expenses, manage employee reimbursements, and review spending, with tools such as receipt scanning and integrations with accounting systems. The company also offers services for managing corporate card transactions and paying bills, bringing expense-related workflows together in one platform for businesses and their employees. Founded in 2008 by David Barrett, Expensify is headquartered in Portland, Oregon.