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

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

Analyst Ratings

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

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

Definitive Healthcare currently has a consensus price target of $5.81, indicating a potential upside of 27.19%. Palantir Technologies has a consensus price target of $31.71, indicating a potential downside of 47.03%. Given Definitive Healthcare’s stronger consensus rating and higher probable upside, research analysts plainly believe Definitive Healthcare is more favorable than Palantir Technologies.

Insider and Institutional Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Definitive Healthcare	$255.85 million	2.11	-$202.39 million	($3.10)	-1.47
Palantir Technologies	$2.23 billion	60.26	$209.82 million	$0.20	299.36

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 Definitive Healthcare and Palantir Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Definitive Healthcare	-142.38%	1.60%	1.04%
Palantir Technologies	18.01%	9.94%	7.91%

Volatility and Risk

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

Summary

Palantir Technologies beats Definitive Healthcare on 9 of the 14 factors compared between the two stocks.

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.

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.