Better Buy: Palantir vs. Snowflake

As the world becomes more digitally connected, enterprises are increasingly depending on data to deliver value. In turn, data-guru companies Snowflake (NYSE: SNOW) and Palantir Technologies (NYSE: PLTR) have garnered a lot of attention from Wall Street. However, following a heavy sell-off in technology stocks in the final months of 2021, both companies have retreated from prior gains despite impressive growth. Let's dig in and see which software leader may serve as a better long-term investment for investors.

Snowflake and Palantir operate overlapping markets and aim to help solve the same issues. Namely, both companies create software tools that allow enterprises to derive data-driven insights from disparate systems. According to research from IDC, over 80% of enterprise data will be unstructured by 2025. This means that customer records housed in a customer relationship management (CRM) system or financial data stored in an enterprise resource planning system are disconnected and incongruent with one another. As the world becomes a more connected place and data becomes a pillar of an enterprise, the need for digital transformation is rising.

Large corporations have options to choose from when it comes to storing and analyzing data. Data-warehouse-as-a-service company Snowflake, which recorded the largest software initial public offering (IPO) of all time in September 2020, is becoming a market leader in data analytics.

Source Fool.com