Analyzing Xperi (NYSE:XPER) & Palantir Technologies (NASDAQ:PLTR)

Xperi (NYSE:XPER) and Palantir Technologies (NASDAQ:PLTR) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xperi	-7.12%	4.04%	2.72%
Palantir Technologies	49.01%	30.57%	25.64%

Valuation & Earnings

This table compares Xperi and Palantir Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xperi	$448.11 million	0.56	-$56.34 million	($0.70)	-7.38
Palantir Technologies	$4.48 billion	105.64	$1.63 billion	$1.17	168.16

Palantir Technologies has higher revenue and earnings than Xperi. Xperi 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

Xperi has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Palantir Technologies has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xperi	1	1	2	0	2.25
Palantir Technologies	3	8	26	1	2.66

Xperi presently has a consensus target price of $11.00, indicating a potential upside of 112.97%. Palantir Technologies has a consensus target price of $203.48, indicating a potential upside of 3.42%. Given Xperi’s higher possible upside, equities research analysts clearly believe Xperi is more favorable than Palantir Technologies.

Institutional and Insider Ownership

94.3% of Xperi shares are held by institutional investors. Comparatively, 45.6% of Palantir Technologies shares are held by institutional investors. 3.2% of Xperi shares are held by company insiders. Comparatively, 9.5% of Palantir Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Palantir Technologies beats Xperi on 13 of the 15 factors compared between the two stocks.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, 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.