MSFT vs PLTR Comparison: AI Score, Valuation, Performance and Upside
Compare Microsoft's Azure/Copilot scale against Palantir's high-margin government and commercial AI platform business, and which offers better risk-adjusted AI exposure.
Use this Microsoft vs Palantir comparison to evaluate the key differences across valuation, growth, profitability, and risk before making an investment decision.
PLTR holds the edge across 3 of 5 key metrics in this comparison. PLTR has delivered stronger 1-year price return (+11.62% vs +5.07%), though MSFT has the better forward P/E setup (21.78x vs 80.50x for PLTR). PLTR leads on both revenue growth (92.80%) and operating margin (47.12%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for MSFT (+10.89%) than for PLTR (+2.89%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
| Metric | MSFT | PLTR |
|---|---|---|
| AI scorei | 60.9 | 67.1 |
| AI ranki | #139 | #49 |
| Latest closei | $539.44 | $200.50 |
| 1M returni | +8.51% | +16.19% |
| 3M returni | +34.49% | +49.14% |
| 6M returni | +28.36% | +40.45% |
| 1Y returni | +5.07% | +11.62% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | MSFT | PLTR |
|---|---|---|
| 1Y ago | $10.54K (+5.4%) started 2025-10-16 | $11.26K (+12.6%) started 2025-10-16 |
| 5Y ago | $18.7K (+87.0%) started 2021-10-18 | $82.65K (+726.5%) started 2021-10-18 |
| 10Y ago | $117.92K (+1079.2%) started 2016-10-17 | $211.05K (+2010.5%) started 2020-09-30 |
Hypothetical — past performance does not guarantee future results.
| Metric | MSFT | PLTR |
|---|---|---|
| Market capi | $3.81T | $447.67B |
| Trailing P/Ei | 28.58 | 159.22 |
| Forward P/Ei | 21.78 | 80.50 |
| Price/Salesi | 11.87 | 96.76 |
| EV/Revenuei | 11.65 | 71.25 |
| Analyst targeti | $569.45 | $191.68 |
| Target upsidei | +10.89% | +2.89% |
| Metric | MSFT | PLTR |
|---|---|---|
| Revenue growthi | 17.70% | 92.80% |
| Earnings growthi | 31.70% | 215.40% |
| EPS growthi | +31.70% | +215.40% |
| FCF margini | +4.99% | +35.07% |
| Operating margini | 45.11% | 47.12% |
| Profit margini | 40.30% | 49.01% |
| ROIC proxyi | 34.04% | 38.10% |
| Return on equityi | 34.04% | 38.10% |
| Dividend yieldi | 0.71% | N/A |
| Payout ratioi | 19.83% | 0.00% |
| Dividend growth streaki | No increase yet | N/A |
| Betai | 1.10 | 1.56 |
| Debt/equityi | 29.12 | 2.14 |
| Current ratioi | 1.23 | 7.23 |
| Quick ratioi | 1.10 | 7.09 |
Over the past year, MSFT and PLTR have moved moderately in the same direction (correlation of 0.41), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | MSFT | PLTR |
|---|---|---|---|
| 1Y | Growthi | +5.44% | +12.56% |
| CAGRi | +5.45% | +12.59% | |
| Volatilityi | 32.79% | 60.05% | |
| Sharpe ratioi | 0.19 | 0.41 | |
| Sortino ratioi | 0.29 | 0.66 | |
| Max drawdowni | 34.91% | 48.22% | |
| Current drawdowni | 0.74% | 4.09% | |
| Avg drawdowni | 17.19% | 23.01% | |
| Ulcer Indexi | 19.81% | 26.02% | |
| Max daily dropi | 9.99% | 11.62% | |
| Max wkly dropi | 14.43% | 17.88% | |
| 5Y | Growthi | +81.12% | +726.46% |
| CAGRi | +12.63% | +52.63% | |
| Volatilityi | 28.17% | 66.85% | |
| Sharpe ratioi | 0.40 | 0.89 | |
| Sortino ratioi | 0.60 | 1.43 | |
| Max drawdowni | 37.15% | 77.57% | |
| Current drawdowni | 0.74% | 4.09% | |
| Avg drawdowni | 12.22% | 31.74% | |
| Ulcer Indexi | 15.69% | 40.15% | |
| Max daily dropi | 9.99% | 21.31% | |
| Max wkly dropi | 14.43% | 38.89% | |
| 10Y | Growthi | +951.30% | +2010.53% |
| CAGRi | +26.53% | +65.64% | |
| Volatilityi | 27.78% | 69.73% | |
| Sharpe ratioi | 0.83 | 1.00 | |
| Sortino ratioi | 1.23 | 1.65 | |
| Max drawdowni | 37.15% | 84.62% | |
| Current drawdowni | 0.74% | 4.09% | |
| Avg drawdowni | 7.65% | 39.26% | |
| Ulcer Indexi | 11.63% | 47.32% | |
| Max daily dropi | 14.74% | 21.31% | |
| Max wkly dropi | 16.36% | 38.89% |
| Category | MSFT | PLTR |
|---|---|---|
| Company | MSFT | PLTR |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Software - Infrastructure |
| Core business | Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. | 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. |
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AI score, forward P/E, analyst target upside, operating margin, and revenue growth are scored head-to-head, with a running tally of which ticker leads on how many metrics.
Volatility, Sharpe and Sortino ratios, maximum, current, and average drawdown, Ulcer Index, and worst single-day and single-week drops across every timeframe.
Pairwise daily-return correlation for every combination, so you can see whether two holdings actually diversify each other or just move together.
A scatter plot of forward P/E against return on equity, plus drawdown and 30-day rolling volatility charts, to separate what is cheap from what is merely beaten down.
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