Comparing Palantir Technologies (NASDAQ:PLTR) & Samsara (NYSE:IOT)

Samsara (NYSE:IOT) and Palantir Technologies (NASDAQ:PLTR) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Valuation and Earnings

This table compares Samsara and Palantir Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Samsara	$1.25 billion	16.18	-$154.91 million	($0.22)	-161.42
Palantir Technologies	$2.87 billion	130.05	$462.19 million	$0.30	523.63

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

Risk & Volatility

Samsara has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Palantir Technologies has a beta of 2.59, indicating that its share price is 159% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Samsara and Palantir Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Samsara	0	9	8	0	2.47
Palantir Technologies	2	16	4	0	2.09

Samsara currently has a consensus target price of $49.71, suggesting a potential upside of 39.99%. Palantir Technologies has a consensus target price of $136.61, suggesting a potential downside of 13.04%. Given Samsara’s stronger consensus rating and higher possible upside, analysts clearly believe Samsara is more favorable than Palantir Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Samsara	-9.04%	-11.14%	-5.95%
Palantir Technologies	22.18%	10.75%	8.71%

Institutional and Insider Ownership

96.0% of Samsara shares are held by institutional investors. Comparatively, 45.7% of Palantir Technologies shares are held by institutional investors. 46.5% of Samsara shares are held by insiders. Comparatively, 12.9% of Palantir Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Palantir Technologies beats Samsara on 9 of the 14 factors compared between the two stocks.

About Samsara

Samsara Inc. provides solutions that connects physical operations data to its connected operations cloud in the United States and internationally. The company's Connected Operations Cloud includes Data Platform, which ingests, aggregates, and enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy. Its applications include video-based safety that enables customers to build a safety program and protect their teams with AI-enabled video; vehicle telematics which provides visibility into real-time vehicle location and diagnostics with GPS tracking, routing and dispatch, fuel efficiency management, electric vehicle usage and charge planning, preventative maintenance, and insights to manage fuel and energy costs; and mobile apps and workflows that improves productivity for frontline workers and enables regulatory compliance for workers to see upcoming jobs, capture electronic documents, perform maintenance inspections, maintain compliance logs, and message with back-office administration. The company also provides equipment monitoring which offers visibility and management of unpowered and powered assets, ranging from generators and compressors to heavy construction equipment and trailers to improve operating efficiency, prevent unplanned downtime, and avoid critical safety and compliance issues; and site visibility that provides remote visibility into sites to improve onsite security, safety, and incident response times. It serves transportation, wholesale and retail trade, construction, field services, logistics, utilities and energy, healthcare and education, manufacturing, food and beverage, and other industries, as well as government. Samsara Inc. was incorporated in 2015 and is headquartered in San Francisco, California.

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.