Sifting through countless of stocks in the Software industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Tyler Technologies, Inc. or Palantir Technologies Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Tyler Technologies, Inc. and Palantir Technologies Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Tyler Technologies, Inc. and Palantir Technologies Inc.

Tyler Technologies, Inc. provides integrated software and technology management solutions for the public sector in the United States. It operates in two segments, Enterprise Software and Platform Technologies. The company designs, develops, markets, and supports a range of software solutions to serve mission-critical back-office functions. It also offers platform and transformative technology solutions, such as cybersecurity, data and insights, digital solutions, payments, platform technologies, and outdoor recreation; public administration solutions, including civic services, ERP, property and recording, and regulatory; and corrections, courts and justice, and public safety solutions. In addition, the company provides school ERP and student transportation K-12 education solutions; and health and human services solutions comprising environmental health, and disability and benefits. It has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was formerly known as Tyler Corporation and changed its name to Tyler Technologies, Inc. in June 1999. Tyler Technologies, Inc. was founded in 1966 and is based in Plano, Texas.

Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. It provides Palantir Gotham integrates with other platforms for defense offerings which enables users to see, understand, and act in the modern battlespace; operations centers to the tactical edge; integrating data from domains and sensors in near real-time; and situational awareness and accelerating operational decision-making, as well as facilitates the hand-off between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform. The company also offers Palantir Foundry, a platform that helps organizations operate by creating a central operating system for their data; and allows individual users to integrate and analyze the data they need in one place. In addition, it provides Palantir Apollo, a software that delivers software and updates across the business, as well as enables customers to deploy their software virtually in any environment; and Palantir Artificial Intelligence Platform that provides unified access to open-source, self-hosted, and commercial large language models (LLMs) that can transform structured and unstructured data into LLM-understandable objects and can turn organizations’ actions and processes into tools for humans and LLM-driven agents. The company also has a strategic partnership with Ondas Inc. to develop and deploy AI-enabled operational capabilities to scale stratospheric, aerial, and land-based ISR missions. The company has a strategic collaboration with NVIDIA to deliver an intelligent engine for running NVIDIA AI and Nemotron open models in sovereign environments. The company was incorporated in 2003 and is headquartered in Aventura, Florida.

Latest Software and Tyler Technologies, Inc., Palantir Technologies Inc. Stock News

As of September 2, 2026, Tyler Technologies, Inc. had a $15.4 billion market capitalization, compared to the Software median of $1.0 million. Tyler Technologies, Inc.’s stock is down 16.3% in 2026, up 2.7% in the previous five trading days and down 32.15% in the past year.

Currently, Tyler Technologies, Inc.’s price-earnings ratio is 49.4. Tyler Technologies, Inc.’s trailing 12-month revenue is $2.4 billion with a 13.4% net profit margin. Year-over-year quarterly sales growth most recently was 8.2%. Analysts expect adjusted earnings to reach $13.099 per share for the current fiscal year. Tyler Technologies, Inc. does not currently pay a dividend.

As of September 2, 2026, Palantir Technologies Inc. had a $407.2 billion market cap, putting it in the 99th percentile of all stocks. Palantir Technologies Inc.’s stock is up 3% in 2026, down 1.5% in the previous five trading days and up 7.87% in the past year.

Currently, Palantir Technologies Inc.’s price-earnings ratio is 145.0. Palantir Technologies Inc.’s trailing 12-month revenue is $6.2 billion with a 49.0% net profit margin. Year-over-year quarterly sales growth most recently was 92.8%. Analysts expect adjusted earnings to reach $1.603 per share for the current fiscal year. Palantir Technologies Inc. does not currently pay a dividend.

How We Compare Tyler Technologies, Inc. and Palantir Technologies Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Tyler Technologies, Inc. and Palantir Technologies Inc.’s stock grades to see how they measure up against one another.

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Tyler Technologies, Inc. and Palantir Technologies Inc. Stock Value Grades

Company	Ticker	Value
Tyler Technologies, Inc.	TYL	F
Palantir Technologies Inc.	PLTR	F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Tyler Technologies, Inc. has a Value Score of 18, which is Ultra Expensive. Palantir Technologies Inc. has a Value Score of 1, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Tyler Technologies, Inc. or Palantir Technologies Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Tyler Technologies, Inc. or Palantir Technologies Inc. is the better investment when it comes to value.

Tyler Technologies, Inc. and Palantir Technologies Inc.’s Momentum Grades

Company	Ticker	Momentum
Tyler Technologies, Inc.	TYL	D
Palantir Technologies Inc.	PLTR	B

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Tyler Technologies, Inc. has a Momentum Score of 34, which is Weak. Palantir Technologies Inc. has a Momentum Score of 62, which is Strong.

The Momentum Grade Winner: Palantir Technologies Inc.

As you can clearly see from the Momentum Grade breakdown above, Palantir Technologies Inc. is considered to have stronger momentum compared to Tyler Technologies, Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Palantir Technologies Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Tyler Technologies, Inc. and Palantir Technologies Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Tyler Technologies, Inc.	TYL	C
Palantir Technologies Inc.	PLTR	A

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Tyler Technologies, Inc. has a Earnings Estimate Score of 46, which is Neutral. Palantir Technologies Inc. has a Earnings Estimate Score of 81, which is Very Positive.

The Earnings Estimate Revisions Grade Winner: Palantir Technologies Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Palantir Technologies Inc. has a better Earnings Estimate Revisions Grade than Tyler Technologies, Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Palantir Technologies Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Tyler Technologies, Inc. and Palantir Technologies Inc. Grades

In addition to Estimate Revisions, Value and Momentum, A+ Investor also provides grades for Growth and Quality.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Tyler Technologies, Inc. and Palantir Technologies Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Tyler Technologies, Inc. or Palantir Technologies Inc. Stock?

Overall, Tyler Technologies, Inc. stock has a Value Score of 18, Momentum Score of 34 and Estimate Revisions Score of 46.

Palantir Technologies Inc. stock has a Value Score of 1, Momentum Score of 62 and Estimate Revisions Score of 81.

Comparing Tyler Technologies, Inc. and Palantir Technologies Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.