Palantir Leads Over C3.ai as the Better AI Stock Pick Despite Higher Valuation

C3.ai and Palantir are leading AI companies, but their products and business models differ. C3.ai takes a plug-and-play approach while Palantir started with government clients.

Palantir is growing revenue at a similar pace to C3.ai but is much more mature and profitable. C3.ai is still losing money.

Palantir generated over $500 million in revenue last quarter versus $72 million for C3.ai. C3.ai relies heavily on just a few customers.

Palantir is currently valued at a higher price-to-sales ratio than C3.ai, around 17x versus 10x.

Palantir looks like the better buy right now based on its profitability, though its valuation is high. C3.ai is riskier but cheaper.