Executive Summary
While legacy primes like Lockheed Martin focus on hardware, Palantir ($PLTR) is capturing the value chain through software. The TITAN contract is not just revenue; it is the validation of the AI-defined kill chain.
Analyst Note: We believe the market is mispricing the stickiness of the AIP platform within the DoD. Once integrated, the switching costs are effectively infinite.
Valuation Gap
Traditional defense trades at ~18x P/E. Palantir trades like SaaS because it is SaaS, but with a moat dug by government clearance levels.
| Metric | Lockheed Martin | Palantir |
|---|---|---|
| Gross Margin | ~12% | ~80% |
| Revenue Growth | 3-5% | 20%+ |
| Moat Source | Hardware IP | Data Gravity |
The Verdict
Status: Long Term HoldWe view any dip below $XX as a buying opportunity. The defense sector is undergoing a software update, and Palantir is the only vendor with the root password.