Key Takeaways

• Cash Conversion Edge: Palantir turned 51% of 2025 revenue into free cash flow against Snowflake’s 24%, and TIKR’s model puts Palantir’s annualized return at 53% versus Snowflake’s 26%.
• Valuation Discount: Snowflake stock trades at 15x forward sales, less than half Palantir stock’s 35x.
• Growth Divide: Palantir’s revenue grew 85% YoY in Q1 against Snowflake’s 34%, and Palantir’s 150% net dollar retention topped Snowflake’s 126% net revenue retention.
• Profit Milestone: Palantir posted $0.34 in GAAP EPS last quarter while Snowflake’s GAAP EPS stays negative through TIKR’s estimates until 2031.

Palantir converts more revenue to cash than Snowflake, but Snowflake costs…