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MSFT vs. PLTR: Microsoft vs. Palantir Stock Comparison

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 ItemMSFTPLTR
NameMicrosoft Corp.Palantir Technologies Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareApplication Software
Market Capitalization2,770.95 billion USD279.69 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMarch 13, 1986September 30, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MSFT
PLTR
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Microsoft (MSFT) vs. Palantir (PLTR): 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.

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Palantir (PLTR)
MetricMSFTPLTR
Total Return (1Y)-24.41%-14.41%

Risk Profile

Drawdown History

MSFT
PLTR
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Microsoft (MSFT) vs. Palantir (PLTR): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and Palantir (PLTR)
MetricMSFTPLTR
Volatility (1Y, Annualized)26.96%51.16%
Beta (5Y)1.131.56
Avg. Volume (3M)39.43M44.95M

Risk-Adjusted Performance

Risk-Return Positioning

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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.

Profitability

ROE (TTM)

Both Microsoft (MSFT) at 34.01% and Palantir (PLTR) at 32.59% 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

34.01%

Max
53.38%
MSFT
34.01%
Q3
16.53%
Median
5.38%
Q1
-13.43%
Min
-55.27%

PLTR

Software & Services industry group

32.59%

Max
53.38%
PLTR
32.59%
Q3
16.53%
Median
5.38%
Q1
-13.43%
Min
-55.27%
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Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Microsoft (MSFT) at 39.34% and Palantir (PLTR) at 43.67% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

MSFT

Software & Services industry group

39.34%

Max
44.20%
MSFT
39.34%
Q3
14.93%
Median
3.32%
Q1
-5.99%
Min
-34.99%

PLTR

Software & Services industry group

43.67%

Max
44.20%
PLTR
43.67%
Q3
14.93%
Median
3.32%
Q1
-5.99%
Min
-34.99%
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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 46.33% and Palantir (PLTR) at 46.18% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

MSFT

Software & Services industry group

46.33%

Max
60.45%
MSFT
46.33%
Q3
16.49%
Median
4.46%
Q1
-12.92%
Min
-53.94%

PLTR

Software & Services industry group

46.18%

Max
60.45%
PLTR
46.18%
Q3
16.49%
Median
4.46%
Q1
-12.92%
Min
-53.94%
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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)
MetricMSFTPLTR
ROE (TTM)34.01%32.59%
ROA (TTM)14.81%14.70%
Net Margin (TTM)39.34%43.67%
Operating Margin (TTM)46.33%46.18%
Gross Margin (TTM)68.31%84.07%

Growth

Revenue Growth

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

Revenue Growth Metrics

Revenue growth metrics for Microsoft (MSFT) and Palantir (PLTR)
MetricMSFTPLTR
Revenue Growth (YoY)14.93%56.18%
Revenue Growth (3Y CAGR)12.42%32.92%

EPS Growth

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

EPS Growth Metrics

EPS growth metrics for Microsoft (MSFT) and Palantir (PLTR)
MetricMSFTPLTR
EPS Growth (YoY)15.59%231.06%
EPS Growth (3Y CAGR)12.23%--

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.28 keeps current ratio within its industry’s typical mid-range, while Palantir (PLTR) at 6.91 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

1.28

Max
5.55
Q3
2.88
Median
1.72
MSFT
1.28
Q1
1.07
Min
0.03

PLTR

Software & Services industry group

6.91

PLTR
6.91
Max
5.55
Q3
2.88
Median
1.72
Q1
1.07
Min
0.03
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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 0.30 runs a more typical debt-to-equity mix.

MSFT

Software & Services industry group

0.30

Max
2.31
Q3
1.06
Median
0.32
MSFT
0.30
Q1
0.06
Min
0.00

PLTR

Software & Services industry group

0.02

Max
2.31
Q3
1.06
Median
0.32
Q1
0.06
PLTR
0.02
Min
0.00
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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)
MetricMSFTPLTR
Current Ratio (MRQ)1.286.91
Debt / Equity (MRQ)0.300.02
Net Debt / EBITDA0.26-3.87

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 0.97%, ranking against industry peers normally.

MSFT

Software & Services industry group

0.97%

MSFT
0.97%
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%
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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 20.73%, ranking against industry peers normally.

MSFT

Software & Services industry group

20.73%

MSFT
20.73%
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%
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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)
MetricMSFTPLTR
Dividend Yield (TTM)0.97%0.00%
Dividend Payout Ratio (TTM)20.73%0.00%

Valuation

P/E Ratio (TTM)

Microsoft (MSFT) at 22.19 is near its industry’s usual P/E ratio, while Palantir (PLTR) at 131.09 sits above its peer range — an unusually expensive price for PLTR’s trailing earnings.

MSFT

Software & Services industry group

22.19

Max
126.50
Q3
60.82
Median
30.49
MSFT
22.19
Q1
16.22
Min
0.41

PLTR

Software & Services industry group

131.09

PLTR
131.09
Max
126.50
Q3
60.82
Median
30.49
Q1
16.22
Min
0.41
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Microsoft (MSFT) vs. Palantir (PLTR): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Microsoft (MSFT) at 8.71 prices around its industry’s typical P/S ratio, while Palantir (PLTR) at 53.54 clears its benchmark range — PLTR looks notably rich on sales.

MSFT

Software & Services industry group

8.71

Max
18.72
Q3
8.93
MSFT
8.71
Median
4.21
Q1
2.14
Min
0.02

PLTR

Software & Services industry group

53.54

PLTR
53.54
Max
18.72
Q3
8.93
Median
4.21
Q1
2.14
Min
0.02
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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 6.69 sits near its industry’s typical P/B ratio, while Palantir (PLTR) at 33.10 prices above its benchmark range — PLTR looks rich relative to book.

MSFT

Software & Services industry group

6.69

Max
18.46
Q3
8.62
MSFT
6.69
Median
4.00
Q1
1.94
Min
-7.57

PLTR

Software & Services industry group

33.10

PLTR
33.10
Max
18.46
Q3
8.62
Median
4.00
Q1
1.94
Min
-7.57
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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)
MetricMSFTPLTR
P/E Ratio (TTM)22.19131.09
P/S Ratio (TTM)8.7153.54
P/B Ratio (MRQ)6.6933.10
Free Cash Flow Yield (TTM)1.34%0.63%