AI Stock Comparison: C3.ai versus Palantir - Which Performs Better?
In the rapidly evolving world of AI stocks, Palantir and C3.ai are two companies that have been making waves. While both offer innovative solutions, a closer look at their business models, growth, profitability, and valuation reveals that Palantir currently stands out as the better investment choice.
Growth: Palantir Soars Ahead
Palantir's Q2 2025 revenue surged 48% year-over-year to $1.004 billion, with commercial revenue growing an impressive 93% and securing a $10 billion contract from the U.S. Army [1][2][3][5]. In contrast, C3.ai's revenue grew 26% year-over-year to around $108 million last quarter [1][2][3]. Palantir's growth is undeniably more explosive.
Profitability: Palantir Steps Up
Though Palantir’s exact profits aren't detailed, its "Rule of 40" score of 94 indicates a strong balance of growth and profitability metrics, while C3.ai still operates at a net margin loss of around 74% and negative return on equity, signalling continuing unprofitability [2][3].
Valuation: A Matter of Perspective
Palantir trades at an extremely high price-to-sales (P/S) multiple (~110x), meaning its valuation is priced for near-perfect execution and substantial growth to justify the market cap of over $430 billion. C3.ai’s P/S multiple is far lower, about 9x recently, making it more reasonably valued but with slower growth and ongoing losses [1][2][3].
Market Performance and Sentiment: Bullish on Palantir
Palantir stock soared about 148% year-to-date in 2025, reflecting strong investor confidence, while C3.ai has stumbled with more mixed analyst opinions and less bullish momentum [4][3][5].
Business Models: Specialised Approaches
Palantir excels at processing and making sense of large unstructured datasets for government and commercial sectors, helping decision-making. C3.ai specializes in predictive AI and forecasts, particularly favoured by the U.S. military with growing but smaller contract volume [1].
In conclusion, Palantir is the better pick for investors willing to accept a very high valuation in exchange for strong growth and improving profitability. C3.ai might appeal more to those seeking a more moderately priced AI growth stock with a longer path to profitability. The decision depends on risk tolerance and valuation perspective, but as of mid-2025, Palantir’s fundamentals and stock performance make it the more compelling AI stock investment overall [1][2][3][4][5].
[1] Palantir Technologies Q2 2025 Earnings Report [2] C3.ai Q4 FY 2025 Earnings Report [3] Palantir vs C3.ai: A Comprehensive Comparison [4] Palantir Stock Price Forecast 2025 [5] C3.ai Stock Price Forecast 2025
Read also:
- Stratospheric Blockchain Network Launched by World Mobile and Protelindo
- Two Aspects I Adore in the Lexus LFR, Alongside One Concern That Troubles Me
- Powerful! If Virtual Racing Characters Represented Real-Life Supercars, the Mighty Bugatti Mistral Would Be the Game's Final Challenger
- Robotics Revolution: China Debuts Global First - A Shopping Mall for Human-like Androids - Captured on Film
