"Palantir trades at a trailing P/E of 232x earnings and a price-to-sales ratio of 78x trailing revenue. At that multiple, the stock price is built entirely on faith in future growth."
"Booz Allen Hamilton has a $40 billion backlog, a growing dividend, and a market cap of roughly $10 billion against $11.98 billion in FY2025 revenue. You are buying this business at less than 1x sales."
"Booz Allen's stock has fallen about 23% over the past year, and the near-term numbers look rough. Revenue fell 10.2% year-over-year in Q3 FY2026, driven almost entirely by a government shutdown."
"Net income still grew 7% to $200 million that quarter. Free cash flow nearly doubled, rising 85% to $248 million. A company posting those cash flow numbers during a government shutdown is absorbing a temporary disruption."
Palantir Technologies has delivered a 524% gain over five years but is currently down over 10% year-to-date. The stock trades at a high trailing P/E of 232x and a price-to-sales ratio of 78x, relying on future growth expectations. In contrast, Booz Allen Hamilton has a $40 billion backlog and trades at less than 1x sales, despite a recent 23% stock decline. Both companies provide AI analytics to the government, but their market perceptions and valuations differ significantly.
Read at 24/7 Wall St.
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