Definitive Healthcare (NASDAQ:DH) & Palantir Technologies (NYSE:PLTR) Critical Review

Palantir Technologies (NYSE:PLTR) and Definitive Healthcare (NASDAQ:DH) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Valuation & Earnings

This table compares Palantir Technologies and Definitive Healthcare”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palantir Technologies	$2.23 billion	58.80	$209.82 million	$0.20	292.11
Definitive Healthcare	$258.47 million	1.93	-$202.39 million	($3.48)	-1.22

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.

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%	9.94%	7.91%
Definitive Healthcare	-156.65%	0.98%	0.64%

Volatility and Risk

Palantir Technologies has a beta of 2.7, indicating that its share price is 170% more volatile than the S&P 500. Comparatively, Definitive Healthcare has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Insider and Institutional Ownership

45.7% of Palantir Technologies shares are held by institutional investors. Comparatively, 98.7% of Definitive Healthcare shares are held by institutional investors. 12.9% of Palantir Technologies shares are held by insiders. Comparatively, 14.8% of Definitive Healthcare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Palantir Technologies and Definitive Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palantir Technologies	6	8	2	0	1.75
Definitive Healthcare	1	7	3	0	2.18

Palantir Technologies presently has a consensus price target of $31.71, indicating a potential downside of 45.71%. Definitive Healthcare has a consensus price target of $5.81, indicating a potential upside of 37.09%. Given Definitive Healthcare’s stronger consensus rating and higher probable upside, analysts plainly believe Definitive Healthcare is more favorable than Palantir Technologies.

Summary

Palantir Technologies beats Definitive Healthcare on 9 of the 14 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.