Comparing Palantir Technologies (NASDAQ:PLTR) & DoubleVerify (NYSE:DV)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleVerify	0	14	2	0	2.12
Palantir Technologies	3	10	24	1	2.61

DoubleVerify currently has a consensus target price of $13.52, suggesting a potential upside of 0.12%. Palantir Technologies has a consensus target price of $203.28, suggesting a potential upside of 4.70%. Given Palantir Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Palantir Technologies is more favorable than DoubleVerify.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DoubleVerify	7.66%	8.77%	7.34%
Palantir Technologies	49.01%	30.57%	25.64%

Valuation & Earnings

This table compares DoubleVerify and Palantir Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoubleVerify	$748.29 million	2.80	$50.65 million	$0.36	37.51
Palantir Technologies	$4.48 billion	104.25	$1.63 billion	$1.17	165.94

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

Volatility and Risk

DoubleVerify has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Palantir Technologies has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.

Institutional and Insider Ownership

97.3% of DoubleVerify shares are held by institutional investors. Comparatively, 45.6% of Palantir Technologies shares are held by institutional investors. 4.0% of DoubleVerify shares are held by insiders. Comparatively, 9.5% of Palantir Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Palantir Technologies beats DoubleVerify on 14 of the 15 factors compared between the two stocks.

About DoubleVerify

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, and data analytics in the United States and internationally. The company provides solutions to advertisers that enable advertisers to increase the effectiveness and quality and return on their digital advertising investments. It offers DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud-free, brand-suitable, viewability, and geography for each digital ad; DV Authentic Attention that provides actionable, and comprehensive data to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. In addition, the company provides DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. Further, it offers software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.

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.