Microsoft (MSFT) vs. Palantir (PLTR)

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.

Valuation

Microsoft (MSFT) at 24.01 hovers around the typical industry Price-to-Earnings Ratio (TTM), while Palantir (PLTR) at 153.57 sits above its industry benchmark range — an elevated trailing earnings multiple for PLTR relative to peers.

Both look expensive on sales: Microsoft (MSFT) at 9.42 sits in the upper Price-to-Sales Ratio (TTM) quartile, and Palantir (PLTR) at 60.61 prices even higher, above its industry range.

Microsoft (MSFT) at 7.23 sits near its industry’s typical Price-to-Book Ratio (MRQ), while Palantir (PLTR) at 37.47 prices above its benchmark range — PLTR looks rich relative to book.

Valuation at a Glance

Profitability

Both Microsoft (MSFT) at 34.01% and Palantir (PLTR) at 32.59% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.

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 Profit Margin (TTM) quartile of their industries.

Both Microsoft (MSFT) at 46.33% and Palantir (PLTR) at 46.18% squeeze more operating profit from each sales dollar than most peers, ranking in the top Operating Profit Margin (TTM) quartile of their industries.

Profitability at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

Financial Strength

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

Palantir (PLTR) at 0.02 maintains Debt-to-Equity Ratio (MRQ) in the lower-leverage quartile of industry peers, ahead of Microsoft (MSFT) at 0.30, which sits around the industry mid-range.

Financial Strength at a Glance

Dividends

Palantir (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 0.90%, ranking against industry peers normally.

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.

Dividends at a Glance

Performance & Risk

Performance & Risk at a Glance