Palantir vs. UiPath: Which AI-First Software Stock Deserves Your Bet?

Core Insights - Palantir Technologies Inc. and UiPath Inc. are leading companies in AI-centric software innovation [1] - Palantir specializes in large-scale data analytics and decision intelligence, while UiPath focuses on robotic process automation [2][3] Palantir Technologies Inc. (PLTR) - Palantir's Artificial Intelligence Platform (AIP) is driving significant commercial growth, with U.S. commercial revenues increasing by 71% year over year and surpassing a $1 billion annual run rate for the first time [4][10] - The total contract value in the commercial segment surged by 239% year over year, with the number of contracts exceeding $1 million more than doubling [5][10] - AIP bootcamps are key to adoption, enabling rapid onboarding and deployment of AI workflows, thus reducing time-to-value [6][7] - Palantir's focus on the application layer allows it to deliver practical AI systems that provide measurable value from day one [7] UiPath Inc. (PATH) - UiPath is a global leader in the RPA market, automating repetitive digital tasks and facilitating end-to-end automation across various industries [8] - Strategic partnerships with technology giants like Microsoft, Amazon, and Salesforce enhance UiPath's market reach and integration within enterprise IT ecosystems [9] - UiPath reported a 6% year-over-year revenue increase to $357 million, with net retention rates between 110% and 115% [10][11] - The company’s annual recurring revenue rose by 12% to $1.69 billion, reflecting a strong subscription-based business model [11] Financial Estimates - Zacks Consensus Estimate for Palantir's 2025 sales indicates a year-over-year growth of 37%, with EPS estimates trending upward [12] - UiPath's 2025 sales are expected to grow by 8.5%, with EPS growth projected at 6% [15] Valuation Comparison - UiPath's forward sales multiple is 4.07X, below its 12-month median of 4.5X, while Palantir's forward sales multiple stands at 72.9X, above its median of 46.76X [18] - UiPath presents a more attractive valuation and lower-risk entry point compared to Palantir, despite Palantir's impressive growth [19]