Analyzing Talkspace (NASDAQ:TALK) and Tempus AI (NASDAQ:TEM)

Tempus AI (NASDAQ:TEM) and Talkspace (NASDAQ:TALK) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Institutional & Insider Ownership

24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 57.4% of Talkspace shares are owned by institutional investors. 24.3% of Tempus AI shares are owned by insiders. Comparatively, 23.5% of Talkspace shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Tempus AI and Talkspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tempus AI	-22.20%	-53.83%	-11.17%
Talkspace	0.49%	1.03%	0.88%

Volatility & Risk

Tempus AI has a beta of 3.64, indicating that its share price is 264% more volatile than the S&P 500. Comparatively, Talkspace has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Tempus AI and Talkspace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	2	3	9	0	2.50
Talkspace	1	7	1	0	2.00

Tempus AI presently has a consensus price target of $68.54, suggesting a potential upside of 22.08%. Talkspace has a consensus price target of $5.56, suggesting a potential upside of 6.56%. Given Tempus AI’s stronger consensus rating and higher possible upside, equities analysts clearly believe Tempus AI is more favorable than Talkspace.

Earnings & Valuation

This table compares Tempus AI and Talkspace”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	$1.27 billion	7.93	-$245.03 million	($1.72)	-32.64
Talkspace	$228.87 million	3.82	$7.79 million	$0.01	522.00

Talkspace has lower revenue, but higher earnings than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than Talkspace, indicating that it is currently the more affordable of the two stocks.

About Tempus AI

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.

About Talkspace

Talkspace, Inc. operates as a virtual behavioral healthcare company in the United States. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans and employee assistance programs. It provides text, audio, and video-based psychotherapy from licensed therapists. The company offers Talkspace Employee Assistance Program (EAP) and Talkspace Behavioral Health plan (BH) that provides online therapy to members through BH and EAP offerings; and Talkspace for Business for members to access its platform services on a benefit plan paid by the enterprise. It serves its platform through third-party platforms or marketplace, such as Apple App Store and Google Play App Store. Talkspace, Inc. was founded in 2012 and is headquartered in New York, New York.