Analyst Backs Salesforce Over Palantir on 11x P/E and $25 Billion Buyback
Updated
Updated · 24/7 Wall St. · Jun 25
Analyst Backs Salesforce Over Palantir on 11x P/E and $25 Billion Buyback
3 articles · Updated · 24/7 Wall St. · Jun 25
Summary
Salesforce was favored over Palantir on a risk-adjusted basis because it trades at 11 times forward earnings and is returning capital through a $25 billion accelerated share repurchase and a $0.42 dividend.
That case rests on a wide valuation gap: Salesforce sits at about 3 times trailing sales, while Palantir trades near 54 times sales and 79 times forward earnings, with no dividend and $201.6 million in quarterly stock-based compensation.
Both companies posted strong spring quarters, but Salesforce’s $11.13 billion revenue rose 13.3% and Agentforce ARR jumped 205% to $1.2 billion, with more than half of bookings coming from existing customers.
Palantir also delivered standout growth—85% revenue growth overall and 133% in U.S. commercial revenue—but the analyst argued its premium multiple leaves little room for error even as dilution continues.
Investors have already marked down both stocks since earnings, with Salesforce off 13.72% and Palantir down 22.28%, reinforcing the view that valuation discipline now matters more than headline growth.