Microsoft (MSFT) vs. Palantir Technologies (PLTR)

Company Profile

Microsoft (MSFT) and Palantir Technologies (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 Technologies (PLTR) listed on September 30, 2020 and has a much shorter record to draw on.

Historical Performance

Historical Performance at a Glance

Profitability

Both Microsoft (MSFT) at 33.13% and Palantir Technologies (PLTR) at 32.18% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.

Both Microsoft (MSFT) at 39.34% and Palantir Technologies (PLTR) at 43.67% rank in the top quartile for Net Profit Margin (TTM) among industry peers, indicating both companies convert revenue into net income more strongly than typical competitors.

Both Microsoft (MSFT) at 46.75% and Palantir Technologies (PLTR) at 38.13% rank in the top quartile for Operating Profit Margin (TTM) among industry peers, indicating both companies convert revenue into operating income more strongly than typical competitors.

Profitability at a Glance

Financial Strength

Microsoft (MSFT) at 1.28 keeps Current Ratio (MRQ) within its industry mid-range, while Palantir Technologies (PLTR) at 6.91 sits above the industry mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

Both Microsoft (MSFT) at 0.25 and Palantir Technologies (PLTR) at 0.00 post Debt-to-Equity Ratio (MRQ) near their industry mid-ranges, so neither company stands out strongly from peers on leverage.

Palantir Technologies (PLTR) reports a problematic Interest Coverage Ratio (TTM) of -1.53; operating income or EBIT does not fully cover interest expense, so the ratio points to interest-payment strain. Meanwhile Microsoft (MSFT) reports 891.80, ranking against industry peers normally.

Financial Strength at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

Dividend

Palantir Technologies (PLTR) pays no dividend (yield 0.00%) — often a deliberate choice to reinvest earnings rather than return cash. Meanwhile Microsoft (MSFT) reports a yield of 0.82%, ranking against industry peers normally.

Palantir Technologies (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 20.65%, ranking against industry peers normally.

Dividend at a Glance

Valuation

Microsoft (MSFT) at 25.21 hovers around the typical industry Price-to-Earnings Ratio (TTM), while Palantir Technologies (PLTR) at 142.12 sits above its industry benchmark range — an elevated trailing earnings multiple for PLTR relative to peers.

Microsoft (MSFT) at 9.92 sits in the higher-multiple quartile for Price-to-Sales Ratio (TTM), but Palantir Technologies (PLTR) at 62.07 is higher still, above its industry benchmark range — both carry elevated trailing revenue multiples relative to peers, with PLTR higher.

Microsoft (MSFT) at 6.63 hovers around the typical industry Price-to-Book Ratio (MRQ), while Palantir Technologies (PLTR) at 41.39 sits above its industry benchmark range — an elevated book-value multiple for PLTR relative to peers.

Valuation at a Glance