Analyzing Palantir Technologies (NASDAQ:PLTR) and Xperi (NYSE:XPER)

Palantir Technologies (NASDAQ:PLTR) and Xperi (NYSE:XPER) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Profitability

This table compares Palantir Technologies and Xperi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palantir Technologies	49.01%	30.57%	25.64%
Xperi	-7.12%	4.04%	2.72%

Volatility & Risk

Palantir Technologies has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Xperi has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Earnings and Valuation

This table compares Palantir Technologies and Xperi”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palantir Technologies	$6.16 billion	72.62	$1.63 billion	$1.17	159.00
Xperi	$448.11 million	0.54	-$56.34 million	($0.70)	-7.12

Palantir Technologies has higher revenue and earnings than Xperi. Xperi is trading at a lower price-to-earnings ratio than Palantir Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Palantir Technologies and Xperi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palantir Technologies	3	10	23	1	2.59
Xperi	1	1	2	0	2.25

Palantir Technologies currently has a consensus price target of $201.61, suggesting a potential upside of 8.37%. Xperi has a consensus price target of $11.00, suggesting a potential upside of 120.62%. Given Xperi’s higher possible upside, analysts plainly believe Xperi is more favorable than Palantir Technologies.

Insider and Institutional Ownership

45.7% of Palantir Technologies shares are owned by institutional investors. Comparatively, 94.3% of Xperi shares are owned by institutional investors. 9.5% of Palantir Technologies shares are owned by insiders. Comparatively, 3.2% of Xperi shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Palantir Technologies beats Xperi on 13 of the 15 factors compared between the two stocks.

About Palantir Technologies

Palantir Technologies, Inc. engages in the business of building and deploying software platforms that serve as the central operating systems for its customers. It operates under the Commercial and Government segments. The Commercial segment focuses on customers working in non-government industries. The Government segment is involved in providing services to customers that are the United States government and non-United States government agencies. The company was founded by Alexander Ceadmon Karp, Peter Andreas Thiel, Stephen Cohen, and Nathan Dale Gettings in 2003 and is headquartered in Denver, CO.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.