This particular sector is an important service for many modern businesses as the process of data mining takes raw data and turns it into something much easier to digitize and work with. Many companies utilize this type of service as a way to understand how best to improve the inner workings of their business. 

Palantir (NYSE: PLTR) is a highly controversial company that specializes in data mining. It is controversial because it mainly works with governmental agencies and more specifically, it has had a hand in the widely criticized U.S. deportation scheme run by ICE as well as Britain's post-Brexit immigration policies. Whilst Palantir has a unique set of technology on offer which is more suited to large corporations, it will need to expand into the private sector as it currently faces a PR nightmare of public backlash.

However, Palantir is facing tough competition in this data mining space. Below you can find two of its top rivals in this industry.

Alteryx

Alteryx (NYSE: AYX) does not make quite as many headlines as other software as a service (SaaS) companies like Zoom and Atlassian, but it is still a stock worth considering. As a stock in a high-growth sector, this data company could be a good addition to your portfolio. 

What makes Alteryx a serious competitor to Palantir is its excellence in data science and analytics conversions into easily accessible formats for any data worker to use. Amongst its customers, it can count manufacturing icons Hyundai, Chick-fil-a, Barnes & Noble, Cisco, and Coca-Cola. In fact, Coca-Cola's senior business analytics manager downloaded Alteryx as a trial to solve a problem he himself could not solve. From then on he was a fanboy and kept up a subscription with this data company. If that isn't a convincing advertisement, I don't know what is...

The COVID-19 pandemic was not too kind for Alteryx, causing its stock to become rather volatile over the last year but shares are still down almost 40% over the past six months. 

Expectations were topped across the board as revenue jumped 9% year-over-year to $118.8 million, while GAAP gross profit for the first quarter of 2021 was $107.9 million.  

As COVID-19 related restrictions ease and businesses start to come back to full operations, this company is likely to see its volatility reduce and growth continue as normal. 

IBM

IBM (NYSE: IBM) is one of the most widely-renowned technology companies around and sells everything from hardware and software to cloud computing services. As the complete antithesis to Palantir, IBM has developed for itself a culture of trust among customers and partners alike, thanks largely in part to its longevity in the tech sector and first-mover advantage in computing. This reputation in itself could present serious competition to Palantir as IBM has a much larger reach in the global private sector. 

IBM hasn't been at its heights of late though, with its stock gradually declining in recent years as it struggles to keep up with tech competitors. Recently, IBM released its second-quarter results, treating investors to their first bit of optimism in a long time. The tech giant reported earnings of $2.52 per share on revenue of $18.7 billion, up 3% YoY. The firm noted strong performance in client adoption of their hybrid cloud platform which contributed to overall revenue growth.  

On the call, IBM highlighted their impressive and improving renewal rate of 95%, which increased two points from the previous quarter. These deals include six that have a contract value of more than $100 million, including an extension with AT&T. 

Moving forward in 2021 and beyond, IBM plans to focus more on cloud technology and AI services, which means that it will be spinning off its $19 billion technology consulting business as a separate entity. By refocusing on cloud computing and data, IBM could become the first in line for many businesses looking for cloud computing solutions and data analysis to go along with that.

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