C3.ai vs. Palantir: Which Enterprise AI Stock Should You Pick Now?

Core Insights - C3.ai, Inc. and Palantir Technologies Inc. are leading players in the enterprise AI sector, each with distinct strategies for serving government and large corporate clients [1] - C3.ai focuses on providing a wide range of turnkey AI applications, while Palantir emphasizes building autonomous AI agents for complex workflows [7][8] C3.ai Overview - C3.ai has developed over 130 turnkey AI applications aimed at addressing real-world business challenges, including predictive maintenance and fraud detection [2] - The C3 AI Agentic Platform underpins these applications, facilitating rapid deployment and value delivery across various industries [3] - Strategic partnerships with major cloud providers like Microsoft Azure, AWS, and Google Cloud enhance C3.ai's market reach and scalability [4] - Collaborations with consulting firms such as McKinsey QuantumBlack and PwC aim to leverage domain expertise alongside C3.ai's AI capabilities, promoting enterprise adoption [5] - C3.ai is commercializing its Agentic AI capabilities, with over 100 solutions deployed in sectors like defense and government, positioning this area as a key growth driver [6] Palantir Overview - Palantir's Artificial Intelligence Platform (AIP) is designed to enable full enterprise autonomy, shifting focus from augmenting human productivity to creating independent AI agents [7] - AIP integrates large language models with real business outcomes, allowing organizations to deploy AI agents that optimize decision-making across various sectors [8] - Palantir's AI agents have been successfully implemented in defense and intelligence applications, showcasing capabilities in real-time decision-making [10] - The platform has also demonstrated flexibility in commercial applications, improving workflow efficiency for companies like AIG and Walgreens [12] - Despite strong growth, Palantir faces challenges in international markets, particularly in Europe, where AI adoption is slower [14] Price Performance - C3.ai's stock has increased by 31.7% over the past three months, while Palantir's shares have surged by 44.4% during the same period [15] Valuation - C3.ai is trading at a forward price-to-sales (P/S) ratio of 7.24X, significantly below its three-year median of 8.33X and the industry average of 18.26X [19] - In contrast, Palantir's forward sales multiple stands at 74.39X, above its three-year median of 16.02X, indicating a higher valuation compared to C3.ai [19] Earnings Projections - The Zacks Consensus Estimate for C3.ai's fiscal 2026 loss per share has narrowed to 37 cents, while the estimate for fiscal 2027 has improved to 16 cents [22] - For Palantir, the consensus estimate for 2025 earnings per share has declined to 58 cents, and for 2026, it has decreased to 72 cents [24] Conclusion - C3.ai appears to be in a stronger position due to its focused execution as a pure-play enterprise AI provider, with a strategic emphasis on ready-to-deploy applications and strong partnerships [26] - Palantir remains a significant player but faces challenges in commercial traction and international growth, particularly in Europe [27]