Reviewing Palantir Technologies (NYSE:PLTR) & Definitive Healthcare (NASDAQ:DH)
by Jessica Moore · The Cerbat GemPalantir Technologies (NYSE:PLTR – Get Free Report) and Definitive Healthcare (NASDAQ:DH – Get Free Report) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Insider and Institutional Ownership
45.7% of Palantir Technologies shares are owned by institutional investors. Comparatively, 98.7% of Definitive Healthcare shares are owned by institutional investors. 12.9% of Palantir Technologies shares are owned by insiders. Comparatively, 14.8% of Definitive Healthcare shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Palantir Technologies and Definitive Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Palantir Technologies | 18.01% | 10.41% | 8.29% |
| Definitive Healthcare | -156.65% | 0.98% | 0.64% |
Earnings & Valuation
This table compares Palantir Technologies and Definitive Healthcare”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Palantir Technologies | $2.65 billion | 46.99 | $209.82 million | $0.20 | 277.65 |
| Definitive Healthcare | $251.41 million | 2.02 | -$202.39 million | ($3.48) | -1.24 |
Palantir Technologies has higher revenue and earnings than Definitive Healthcare. Definitive Healthcare 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 current recommendations and price targets for Palantir Technologies and Definitive Healthcare, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Palantir Technologies | 5 | 8 | 3 | 0 | 1.88 |
| Definitive Healthcare | 1 | 7 | 3 | 0 | 2.18 |
Palantir Technologies currently has a consensus price target of $29.93, indicating a potential downside of 46.10%. Definitive Healthcare has a consensus price target of $5.81, indicating a potential upside of 35.17%. Given Definitive Healthcare’s stronger consensus rating and higher probable upside, analysts plainly believe Definitive Healthcare is more favorable than Palantir Technologies.
Volatility & Risk
Palantir Technologies has a beta of 2.7, indicating that its stock price is 170% more volatile than the S&P 500. Comparatively, Definitive Healthcare has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.
Summary
Palantir Technologies beats Definitive Healthcare on 9 of the 13 factors compared between the two stocks.
About Palantir Technologies
Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. The company provides Palantir Gotham, a software platform which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform. It also offers Palantir Foundry, a platform that transforms the ways organizations operate by creating a central operating system for their data; and allows individual users to integrate and analyze the data they need in one place. In addition, it provides Palantir Apollo, a software that delivers software and updates across the business, as well as enables customers to deploy their software virtually in any environment; and Palantir Artificial Intelligence Platform (AIP) that provides unified access to open-source, self-hosted, and commercial large language models (LLM) that can transform structured and unstructured data into LLM-understandable objects and can turn organizations’ actions and processes into tools for humans and LLM-driven agents. The company was incorporated in 2003 and is headquartered in Denver, Colorado.
About Definitive Healthcare
Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.