MSFT vs. PLTR: Microsoft vs. Palantir Stock Comparison

August 16, 2026

How do Microsoft (MSFT) and Palantir (PLTR) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Microsoft (MSFT) and Palantir (PLTR) both belong to the Software industry, though MSFT is classified under Systems Software while PLTR falls under Application Software.

Microsoft (MSFT) has more than two decades of public-market history since March 13, 1986, whereas Palantir (PLTR) listed on September 30, 2020 and has a much shorter record to draw on.

Company profile comparison for Microsoft (MSFT) and Palantir (PLTR)
Profile Item	MSFT	PLTR
Name	Microsoft Corporation	Palantir Technologies Inc.
Country/Region	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Software & Services	Software & Services
GICS Industry	Software	Software
GICS Sub-Industry	Systems Software	Application Software
Market Capitalization	3,678.62 billion USD	418.23 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	March 13, 1986	September 30, 2020
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

MSFT

PLTR

GSPC

Microsoft (MSFT) vs. Palantir (PLTR), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Microsoft (MSFT) and Palantir (PLTR). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Microsoft (MSFT) and Palantir (PLTR). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Palantir (PLTR)
Metric	MSFT	PLTR
Total Return (1Y)	-4.43%	-3.86%
Total Return (3Y, Annualized)	16.10%	122.88%
Total Return (5Y, Annualized)	12.00%	47.53%

Risk Profile

Drawdown History

MSFT

PLTR

GSPC

Microsoft (MSFT) vs. Palantir (PLTR), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Microsoft (MSFT) and Palantir (PLTR). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and Palantir (PLTR)
Metric	MSFT	PLTR
Volatility (1Y, Annualized)	32.14%	60.53%
Beta (5Y)	1.11	1.64
Max Drawdown (5Y)	-37.15%	-79.14%
Avg. Volume (3M)	40.35M	42.99M

Risk-Adjusted Performance

Risk-Return Positioning

MSFT and PLTR are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and Palantir (PLTR)
Metric	MSFT	PLTR
Sharpe Ratio (1Y)	-0.26	-0.13
Sortino Ratio (1Y)	-0.40	-0.20

Profitability

ROE (TTM)

Both Microsoft (MSFT) at 34.04% and Palantir (PLTR) at 38.10% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

MSFT

Software & Services industry group

34.04%

Max: 62.27%
MSFT: 34.04%
Q3: 16.91%
Median: 5.27%
Q1: -13.73%
Min: -54.87%

PLTR

Software & Services industry group

38.10%

Max: 62.27%
PLTR: 38.10%
Q3: 16.91%
Median: 5.27%
Q1: -13.73%
Min: -54.87%

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Palantir (PLTR) at 49.01% keeps the most of each sales dollar — above its industry’s net margin range — and Microsoft (MSFT) at 40.31% also retains a top-quartile share.

MSFT

Software & Services industry group

40.31%

Max: 41.99%
MSFT: 40.31%
Q3: 15.18%
Median: 3.79%
Q1: -5.84%
Min: -30.39%

PLTR

Software & Services industry group

49.01%

PLTR: 49.01%
Max: 41.99%
Q3: 15.18%
Median: 3.79%
Q1: -5.84%
Min: -30.39%

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Microsoft (MSFT) at 45.11% and Palantir (PLTR) at 47.12% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

MSFT

Software & Services industry group

45.11%

Max: 47.12%
MSFT: 45.11%
Q3: 15.23%
Median: 4.59%
Q1: -6.33%
Min: -32.77%

PLTR

Software & Services industry group

47.12%

PLTR: 47.12%
Max: 47.12%
Q3: 15.23%
Median: 4.59%
Q1: -6.33%
Min: -32.77%

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and Palantir (PLTR)
Metric	MSFT	PLTR
ROE (TTM)	34.04%	38.10%
ROA (TTM)	14.09%	17.29%
Net Margin (TTM)	40.31%	49.01%
Operating Margin (TTM)	45.11%	47.12%
Gross Margin (TTM)	67.94%	84.80%

Growth

Revenue Growth

Palantir (PLTR) at 56.18% clears its industry range for revenue growth, far stronger top-line momentum than Microsoft (MSFT) at 17.79%, which is closer to a typical peer reading.

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their Revenue Growth across different time periods.

EPS Growth

Palantir (PLTR) at 231.06% clears its industry range for EPS growth, a much stronger earnings trajectory than Microsoft (MSFT) at 31.60%, which is closer to a typical peer reading.

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microsoft (MSFT) and Palantir (PLTR)
Metric	MSFT	PLTR
Revenue Growth (YoY)	17.79%	56.18%
Revenue Growth (3Y CAGR)	16.12%	32.92%
EPS Growth (YoY)	31.60%	231.06%
EPS Growth (3Y CAGR)	22.86%	--

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical mid-range, while Palantir (PLTR) at 7.23 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

MSFT

Software & Services industry group

1.23

Max: 5.39
Q3: 2.79
Median: 1.63
MSFT: 1.23
Q1: 1.03
Min: 0.03

PLTR

Software & Services industry group

7.23

PLTR: 7.23
Max: 5.39
Q3: 2.79
Median: 1.63
Q1: 1.03
Min: 0.03

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Palantir (PLTR) at 0.02 keeps leverage in the lower industry quartile, while Microsoft (MSFT) at 0.29 runs a more typical debt-to-equity mix.

MSFT

Software & Services industry group

0.29

Max: 2.42
Q3: 1.07
Median: 0.33
MSFT: 0.29
Q1: 0.06
Min: 0.00

PLTR

Software & Services industry group

0.02

Max: 2.42
Q3: 1.07
Median: 0.33
Q1: 0.06
PLTR: 0.02
Min: 0.00

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Microsoft (MSFT) and Palantir (PLTR)
Metric	MSFT	PLTR
Current Ratio (MRQ)	1.23	7.23
Debt / Equity (MRQ)	0.29	0.02
Net Debt / EBITDA	0.27	-3.45

Dividends

Dividend Yield (TTM)

Palantir (PLTR) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a yield of 0.73%, ranking against industry peers normally.

MSFT

Software & Services industry group

0.73%

MSFT: 0.73%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PLTR

Software & Services industry group

0.00%

PLTR: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Palantir (PLTR) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a payout of 19.83%, ranking against industry peers normally.

MSFT

Software & Services industry group

19.83%

MSFT: 19.83%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PLTR

Software & Services industry group

0.00%

PLTR: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and Palantir (PLTR)
Metric	MSFT	PLTR
Dividend Yield (TTM)	0.73%	0.00%
Dividend Payout Ratio (TTM)	19.83%	0.00%

Valuation

P/E Ratio (TTM)

Microsoft (MSFT) at 27.71 is near its industry’s usual P/E ratio, while Palantir (PLTR) at 148.75 sits above its peer range — an unusually expensive price for PLTR’s trailing earnings.

MSFT

Software & Services industry group

27.71

Max: 107.17
Q3: 61.33
Median: 34.31
MSFT: 27.71
Q1: 16.59
Min: 0.39

PLTR

Software & Services industry group

148.75

PLTR: 148.75
Max: 107.17
Q3: 61.33
Median: 34.31
Q1: 16.59
Min: 0.39

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Both look expensive on sales: Microsoft (MSFT) at 11.09 sits in the upper P/S ratio quartile, and Palantir (PLTR) at 67.94 prices even higher, above its industry range.

MSFT

Software & Services industry group

11.09

Max: 21.27
MSFT: 11.09
Q3: 10.17
Median: 4.61
Q1: 2.41
Min: 0.02

PLTR

Software & Services industry group

67.94

PLTR: 67.94
Max: 21.27
Q3: 10.17
Median: 4.61
Q1: 2.41
Min: 0.02

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.32 sits near its industry’s typical P/B ratio, while Palantir (PLTR) at 42.78 prices above its benchmark range — PLTR looks rich relative to book.

MSFT

Software & Services industry group

8.32

Max: 21.34
Q3: 9.85
MSFT: 8.32
Median: 4.58
Q1: 2.15
Min: -8.85

PLTR

Software & Services industry group

42.78

PLTR: 42.78
Max: 21.34
Q3: 9.85
Median: 4.58
Q1: 2.15
Min: -8.85

Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and Palantir (PLTR)
Metric	MSFT	PLTR
P/E Ratio (TTM)	27.71	148.75
P/S Ratio (TTM)	11.09	67.94
P/B Ratio (MRQ)	8.32	42.78
Free Cash Flow Yield (TTM)	0.45%	0.52%