MSTR vs. PLTR: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at MSTR and PLTR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
PLTR’s market capitalization of 313.75 billion USD is significantly greater than MSTR’s 100.33 billion USD, highlighting its more substantial market valuation.
With betas of 3.76 for MSTR and 2.64 for PLTR, both stocks show similar sensitivity to overall market movements.
| Symbol | MSTR | PLTR |
|---|---|---|
| Company Name | MicroStrategy Incorporated | Palantir Technologies Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Application | Software - Infrastructure |
| CEO | Mr. Phong Q. Le | Dr. Alexander C. Karp J.D. |
| Price | 366.981 USD | 138.65 USD |
| Market Cap | 100.33 billion USD | 313.75 billion USD |
| Beta | 3.76 | 2.64 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | June 11, 1998 | September 30, 2020 |
| ADR | No | No |
Historical Performance
This chart compares the performance of MSTR and PLTR over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Profitability
Return on Equity
MSTR
-81.73%
Software - Application Industry
- Max
- 59.01%
- Q3
- 14.03%
- Median
- -0.49%
- Q1
- -21.83%
- Min
- -68.62%
MSTR has a negative Return on Equity of -81.73%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
PLTR
12.03%
Software - Infrastructure Industry
- Max
- 83.71%
- Q3
- 25.99%
- Median
- 0.05%
- Q1
- -21.05%
- Min
- -90.24%
PLTR’s Return on Equity of 12.03% is on par with the norm for the Software - Infrastructure industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
MSTR
-12.06%
Software - Application Industry
- Max
- 35.07%
- Q3
- 7.93%
- Median
- -1.48%
- Q1
- -14.32%
- Min
- -44.79%
MSTR has a negative Return on Invested Capital of -12.06%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
PLTR
6.67%
Software - Infrastructure Industry
- Max
- 43.01%
- Q3
- 10.33%
- Median
- 0.71%
- Q1
- -11.46%
- Min
- -43.48%
PLTR’s Return on Invested Capital of 6.67% is in line with the benchmark for the Software - Infrastructure industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
MSTR
-1,163.04%
Software - Application Industry
- Max
- 48.14%
- Q3
- 9.64%
- Median
- -2.64%
- Q1
- -23.52%
- Min
- -72.77%
MSTR has a negative Net Profit Margin of -1,163.04%, indicating the company is operating at a net loss as its expenses exceed revenues.
PLTR
18.32%
Software - Infrastructure Industry
- Max
- 50.20%
- Q3
- 12.07%
- Median
- -0.01%
- Q1
- -16.34%
- Min
- -53.68%
PLTR’s Net Profit Margin of 18.32% is in the upper quartile for the Software - Infrastructure industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
MSTR
-1,648.40%
Software - Application Industry
- Max
- 51.67%
- Q3
- 8.21%
- Median
- -2.71%
- Q1
- -21.29%
- Min
- -60.34%
MSTR has a negative Operating Profit Margin of -1,648.40%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
PLTR
13.02%
Software - Infrastructure Industry
- Max
- 52.62%
- Q3
- 14.66%
- Median
- 2.26%
- Q1
- -13.47%
- Min
- -51.37%
PLTR’s Operating Profit Margin of 13.02% hovers around the midpoint for the Software - Infrastructure industry, indicating that its efficiency in managing core business operations is characteristic of the sector.
Profitability at a Glance
| Symbol | MSTR | PLTR |
|---|---|---|
| Return on Equity (TTM) | -81.73% | 12.03% |
| Return on Assets (TTM) | -12.16% | 8.47% |
| Return on Invested Capital (TTM) | -12.06% | 6.67% |
| Net Profit Margin (TTM) | -1163.04% | 18.32% |
| Operating Profit Margin (TTM) | -1648.40% | 13.02% |
| Gross Profit Margin (TTM) | 70.95% | 80.01% |
Financial Strength
Current Ratio
MSTR
0.66
Software - Application Industry
- Max
- 5.09
- Q3
- 2.79
- Median
- 1.66
- Q1
- 1.04
- Min
- 0.00
MSTR’s Current Ratio of 0.66 falls into the lower quartile for the Software - Application industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
PLTR
6.49
Software - Infrastructure Industry
- Max
- 4.05
- Q3
- 2.27
- Median
- 1.53
- Q1
- 1.07
- Min
- 0.17
PLTR’s Current Ratio of 6.49 is exceptionally high, placing it well outside the typical range for the Software - Infrastructure industry. While this points to a very strong liquidity position, it may also suggest that the company is not using its assets efficiently to generate profits.
Debt-to-Equity Ratio
MSTR
0.08
Software - Application Industry
- Max
- 1.86
- Q3
- 0.79
- Median
- 0.19
- Q1
- 0.05
- Min
- 0.00
MSTR’s Debt-to-Equity Ratio of 0.08 is typical for the Software - Application industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
PLTR
0.05
Software - Infrastructure Industry
- Max
- 2.56
- Q3
- 1.15
- Median
- 0.34
- Q1
- 0.06
- Min
- 0.00
PLTR’s Debt-to-Equity Ratio of 0.05 is in the lower quartile for the Software - Infrastructure industry. This points to a conservative financing strategy with low reliance on debt, resulting in lower financial risk but potentially limiting the scale of its strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
MSTR
-229.74
Software - Application Industry
- Max
- 31.61
- Q3
- 3.42
- Median
- -1.98
- Q1
- -17.62
- Min
- -40.07
MSTR has a negative Interest Coverage Ratio of -229.74. This indicates that its operating earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
PLTR
--
Software - Infrastructure Industry
- Max
- 34.07
- Q3
- 5.00
- Median
- 0.60
- Q1
- -17.99
- Min
- -50.82
Interest Coverage Ratio data for PLTR is currently unavailable.
Financial Strength at a Glance
| Symbol | MSTR | PLTR |
|---|---|---|
| Current Ratio (TTM) | 0.66 | 6.49 |
| Quick Ratio (TTM) | 0.66 | 6.49 |
| Debt-to-Equity Ratio (TTM) | 0.08 | 0.05 |
| Debt-to-Asset Ratio (TTM) | 0.00 | 0.04 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.01 | -1.75 |
| Interest Coverage Ratio (TTM) | -229.74 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for MSTR and PLTR. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
MSTR
0.00%
Software - Application Industry
- Max
- 3.71%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSTR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting all earnings back into the business, though it may be less typical in mature, income-oriented sectors.
PLTR
0.00%
Software - Infrastructure Industry
- Max
- 2.12%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PLTR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting all earnings back into the business, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
MSTR
0.00%
Software - Application Industry
- Max
- 105.87%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSTR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This strategy is common for growth-oriented companies that reinvest all profits back into the business.
PLTR
0.00%
Software - Infrastructure Industry
- Max
- 48.68%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PLTR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This strategy is common for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | MSTR | PLTR |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio
MSTR
-17.62
Software - Application Industry
- Max
- 194.53
- Q3
- 98.53
- Median
- 49.69
- Q1
- 22.37
- Min
- 0.40
MSTR has a negative P/E Ratio of -17.62. This occurs when a company has negative earnings (a net loss) and makes the ratio unsuitable for valuation analysis.
PLTR
570.61
Software - Infrastructure Industry
- Max
- 154.52
- Q3
- 75.94
- Median
- 28.39
- Q1
- 19.50
- Min
- 5.15
At 570.61, PLTR’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Software - Infrastructure industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
MSTR
0.06
Software - Application Industry
- Max
- 12.52
- Q3
- 5.42
- Median
- 1.59
- Q1
- 0.19
- Min
- 0.00
MSTR’s Forward PEG Ratio of 0.06 is in the lower quartile for the Software - Application industry. This is a positive indicator, suggesting that the stock may be undervalued as its price is attractive relative to its expected earnings growth.
PLTR
19.85
Software - Infrastructure Industry
- Max
- 7.86
- Q3
- 3.44
- Median
- 1.45
- Q1
- 0.48
- Min
- 0.00
PLTR’s Forward PEG Ratio of 19.85 is exceptionally high for the Software - Infrastructure industry. This indicates its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
MSTR
218.46
Software - Application Industry
- Max
- 18.20
- Q3
- 8.68
- Median
- 4.82
- Q1
- 1.79
- Min
- 0.00
With a P/S Ratio of 218.46, MSTR trades at a valuation that eclipses even the highest in the Software - Application industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing a considerable valuation risk.
PLTR
100.72
Software - Infrastructure Industry
- Max
- 18.79
- Q3
- 9.12
- Median
- 4.57
- Q1
- 1.95
- Min
- 0.01
With a P/S Ratio of 100.72, PLTR trades at a valuation that eclipses even the highest in the Software - Infrastructure industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing a considerable valuation risk.
Price-to-Book Ratio
MSTR
72.15
Software - Application Industry
- Max
- 18.02
- Q3
- 8.55
- Median
- 4.69
- Q1
- 2.09
- Min
- 0.00
The P/B Ratio is not a primary valuation metric for companies in the Software - Application industry, which may rely more on intangible assets or cash flow.
PLTR
60.04
Software - Infrastructure Industry
- Max
- 19.24
- Q3
- 10.37
- Median
- 5.50
- Q1
- 2.58
- Min
- 0.05
The P/B Ratio is not a primary valuation metric for companies in the Software - Infrastructure industry, which may rely more on intangible assets or cash flow.
Valuation at a Glance
| Symbol | MSTR | PLTR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -17.62 | 570.61 |
| Forward PEG Ratio (TTM) | 0.06 | 19.85 |
| Price-to-Sales Ratio (P/S, TTM) | 218.46 | 100.72 |
| Price-to-Book Ratio (P/B, TTM) | 72.15 | 60.04 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -4.89 | 237.98 |
| EV-to-EBITDA (TTM) | -13.25 | 730.09 |
| EV-to-Sales (TTM) | 218.56 | 100.48 |