Palantir Technologies Inc. (PLTR)vs QCOM Holdings, Inc. (QCOM)

Quick verdict

Palantir Technologies Inc. (PLTR) and QCOM Holdings, Inc. (QCOM) appeal to different investors. On our six-factor framework, PLTR scores 2.5 and QCOM scores 3.5. neither clearly looks cheaper on the multiples that matter, while QCOM grows faster and PLTR earns higher returns on capital. Overall, QCOM edges this comparison, but the right pick depends on whether you prioritise value, growth, income or balance-sheet safety.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Palantir Technologies Inc. operates in Software—Infrastructure (Technology), while QCOM Holdings, Inc. sits in Software—Infrastructure (Technology). Because both compete in the same sector, this is a direct head-to-head and the financial differences below are especially meaningful. PLTR carries a beta of 1.58 versus 1.14 for QCOM, meaning PLTR has historically been the more volatile of the two.

Valuation

On valuation, neither clearly is the cheaper stock. PLTR trades on a forward P/E of n/a and EV/EBITDA of 31.64, against n/a and 12.51 for QCOM. Price-to-sales is 16.8 vs 1.25, and free-cash-flow yield is 1.6% vs 1.2%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.

Growth profile

QCOM is the faster grower. PLTR has compounded revenue at 3.6% over three years with EPS growth of 5.0%, while QCOM has delivered 10.8% revenue and 10.4% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.

Profitability and quality

On profitability and quality, PLTR is stronger. PLTR posts a -7.1% operating margin, -8.7% return on equity and -14.3% return on invested capital. QCOM posts -7.8%, -15.3% and -11.5% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.

Balance-sheet risk

PLTR has the safer balance sheet. PLTR carries net-debt/EBITDA of 0.80x with a current ratio of 2.77, versus 1.67x and 2.20 for QCOM. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.

Price performance and shareholder returns

Over the past year PLTR returned -30.4% against 63.1% for QCOM; on a three-year annualised basis it is 6.1% vs 13.4%. PLTR yields 0.0% and QCOM yields 2.4%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.

Which stock fits which investor

For value-oriented investors, PLTR is the better fit on today's multiples. Growth investors will likely prefer QCOM, which is expanding faster. Income investors should lean toward QCOM for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour PLTR for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.

• Value: PLTR
• Growth: QCOM
• Income: QCOM
• Quality: PLTR

Frequently asked questions

Is PLTR or QCOM the better buy right now?

Neither is universally "better." PLTR scores 2.5 and QCOM scores 3.5 on our six-factor framework. neither clearly is cheaper, QCOM grows faster, and PLTR is higher quality — so the right pick depends on your objective.

Which stock is cheaper, PLTR or QCOM?

neither clearly is the cheaper stock across forward P/E (n/a vs n/a), EV/EBITDA (31.64 vs 12.51) and price-to-sales (16.8 vs 1.25).

Which has grown faster, PLTR or QCOM?

QCOM has the stronger growth profile, with three-year revenue CAGR of 3.6% for PLTR versus 10.8% for QCOM.

Which stock pays a bigger dividend?

PLTR yields 0.0% and QCOM yields 2.4%, so QCOM is the stronger income choice.

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