Comparing Palantir Technologies (NASDAQ:PLTR) & Digital Turbine (NASDAQ:APPS)

Digital Turbine (NASDAQ:APPS) and Palantir Technologies (NASDAQ:PLTR) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Risk and Volatility

Digital Turbine has a beta of 2.3, suggesting that its stock price is 130% more volatile than the S&P 500. Comparatively, Palantir Technologies has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Digital Turbine	-14.59%	12.12%	2.27%
Palantir Technologies	28.11%	15.48%	12.64%

Insider & Institutional Ownership

63.7% of Digital Turbine shares are held by institutional investors. Comparatively, 45.7% of Palantir Technologies shares are held by institutional investors. 6.1% of Digital Turbine shares are held by insiders. Comparatively, 12.9% of Palantir Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital Turbine	$490.51 million	1.18	-$92.10 million	($0.73)	-7.10
Palantir Technologies	$2.87 billion	161.35	$462.19 million	$0.42	461.86

Palantir Technologies has higher revenue and earnings than Digital Turbine. Digital Turbine 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 Ratings

This is a summary of current ratings and target prices for Digital Turbine and Palantir Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital Turbine	1	1	1	1	2.50
Palantir Technologies	2	16	5	0	2.13

Digital Turbine presently has a consensus price target of $7.75, indicating a potential upside of 49.61%. Palantir Technologies has a consensus price target of $172.28, indicating a potential downside of 11.19%. Given Digital Turbine’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Digital Turbine is more favorable than Palantir Technologies.

Summary

Palantir Technologies beats Digital Turbine on 10 of the 15 factors compared between the two stocks.

About Digital Turbine

Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.

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.