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  5. KXS: Thanks, 5i for your efforts that have meaningfully helped me to a more secure retirement which I am enjoying now. [Kinaxis Inc.]
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Investment Q&A

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Q: Thanks, 5i for your efforts that have meaningfully helped me to a more secure retirement which I am enjoying now. I do have a question: please can you compare and contrast PLTR and KXS going forward?

Henry

Asked by Henry on August 26, 2024
5i Research Answer:

They are very different companies.

KSX market cap $4.2B (C$), P/E 47X, $230M cash, 2025 growth expected at 45%+. It offers logistics software for global companies. KXS is up 2% this year. 

PLTR market cap $70B (US$), P/E 89X, $3.7B cash, expected growth 25%+. It offers data analytics using AI and has governments as its biggest customer sector. Its stock has significantly more momentum because of its AI connection, up 83% YTD. 

While we like KXS, it has been a disappointment in the past few years (it is well up since its IPO, however). We think it needs to spend some of its cash. But we consider it reliable. And if it can meet its growth targets, investors should start to take more notice. PLTR we think has a better moat. It has been using AI long before it was 'cool'. It has become profitable and we expect it to be added to the S&P 500 Index, perhaps in the next six months. We think PLTR has more upside potential, but it is an expensive and very volatile stock. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in PLTR.