Critical Contrast: Tempus AI (TEM) versus Its Peers

Tempus AI (NASDAQ:TEM) is one of 120 publicly-traded companies in the “Computer programming, data processing, & other computer related” industry, but how does it compare to its competitors? We will compare Tempus AI to similar businesses based on the strength of its valuation, analyst recommendations, dividends, institutional ownership, risk, earnings and profitability.

Institutional & Insider Ownership

24.2% of Tempus AI shares are held by institutional investors. Comparatively, 48.7% of shares of all “Computer programming, data processing, & other computer related” companies are held by institutional investors. 27.6% of Tempus AI shares are held by insiders. Comparatively, 17.5% of shares of all “Computer programming, data processing, & other computer related” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Tempus AI and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	0	6	7	0	2.54
Tempus AI Competitors	1323	5235	11580	355	2.59

Tempus AI presently has a consensus price target of $63.42, suggesting a potential downside of 8.60%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 15.85%. Given Tempus AI’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Tempus AI has less favorable growth aspects than its competitors.

Profitability

This table compares Tempus AI and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tempus AI	N/A	N/A	-111.38%
Tempus AI Competitors	-138.86%	-18.64%	-3.29%

Valuation and Earnings

This table compares Tempus AI and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tempus AI	$803.32 million	-$289.81 million	-8.89
Tempus AI Competitors	$11.64 billion	$2.53 billion	-35,285.40

Tempus AI’s competitors have higher revenue and earnings than Tempus AI. Tempus AI is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Tempus AI competitors beat Tempus AI on 8 of the 12 factors compared.

Tempus AI Company Profile

Tempus AI Inc. is a technology company advancing precision medicine through the practical application of artificial intelligence principally in healthcare. The company provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. Tempus AI Inc. is based in CHICAGO.