Comparing Hello Group (NASDAQ:MOMO) and Palantir Technologies (NYSE:PLTR)

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

Analyst Recommendations

This is a summary of current ratings for Hello Group and Palantir Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hello Group	1	3	1	0	2.00
Palantir Technologies	6	5	4	0	1.87

Hello Group presently has a consensus target price of $8.90, suggesting a potential upside of 46.86%. Palantir Technologies has a consensus target price of $21.25, suggesting a potential downside of 17.75%. Given Hello Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Hello Group is more favorable than Palantir Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hello Group	13.38%	13.61%	9.51%
Palantir Technologies	12.79%	8.28%	6.50%

Risk and Volatility

Hello Group has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Palantir Technologies has a beta of 2.71, meaning that its share price is 171% more volatile than the S&P 500.

Valuation and Earnings

This table compares Hello Group and Palantir Technologies’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hello Group	$1.69 billion	0.52	$275.72 million	$1.10	5.51
Palantir Technologies	$2.23 billion	25.86	$209.82 million	$0.12	215.31

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

Insider & Institutional Ownership

51.0% of Hello Group shares are owned by institutional investors. Comparatively, 45.7% of Palantir Technologies shares are owned by institutional investors. 61.4% of Hello Group shares are owned by insiders. Comparatively, 12.9% of Palantir Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

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

About Hello Group

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.

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.