Digital Turbine (NASDAQ:APPS) versus Palantir Technologies (NASDAQ:PLTR) Head to Head Comparison

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

Analyst Ratings

This is a breakdown of current ratings for Palantir Technologies and Digital Turbine, as reported by MarketBeat.

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

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

Volatility & Risk

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

Earnings & Valuation

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

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

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.

Profitability

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

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

Institutional and Insider Ownership

45.7% of Palantir Technologies shares are held by institutional investors. Comparatively, 63.7% of Digital Turbine shares are held by institutional investors. 12.9% of Palantir Technologies shares are held by company insiders. Comparatively, 6.1% of Digital Turbine shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.

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.