Microsoft Corporation (MSFT) vs Palantir Technologies Inc. (PLTR)

A side-by-side look at how these two compare on valuation, profitability and shareholder returns.

Microsoft vs Palantir Technologies at a glance

Both companies operate in the Information Technology sector, so these figures are broadly like-for-like.

MetricMSFTPLTR
Market cap$3.76T$443.89B
Price$505.06$185.93
P/E ratio (TTM)20.79281.89
P/B ratio (MRQ)6.2862.01
P/S ratio (TTM)8.38100
Revenue growth (1Y)17.79%56.18%
Return on equity (TTM)30.23%22.00%
Return on invested capital (TTM)27.12%18.20%
Gross margin (TTM)67.94%84.80%
Net margin (TTM)40.31%49.00%
Dividend yield (TTM)0.72%-

How they differ

Microsoft is the larger company at $3.76T versus $443.89B — about 8.5x the size.

On trailing earnings, Microsoft is the cheaper of the two at 20.79 against 281.89 for Palantir Technologies.

On sales, Microsoft is the cheaper of the two at 8.38 against 100 for Palantir Technologies.

Palantir Technologies leads on revenue growth over the past year, 56.18% against 17.79%.

Microsoft leads on return on invested capital, 27.12% against 18.20%.

Palantir Technologies leads on gross margin, 84.80% against 67.94%.

Go deeper

Ratios describe the past. Whether either is worth owning depends on what you pay today.

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