Phreesia (NYSE:PHR) & Tempus AI (NASDAQ:TEM) Financial Survey

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Tempus AI and Phreesia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	2	5	9	0	2.44
Phreesia	1	9	9	0	2.42

Tempus AI currently has a consensus target price of $68.92, indicating a potential upside of 61.45%. Phreesia has a consensus target price of $16.65, indicating a potential upside of 62.93%. Given Phreesia’s higher probable upside, analysts clearly believe Phreesia is more favorable than Tempus AI.

Profitability

This table compares Tempus AI and Phreesia’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%
Phreesia	1.85%	5.13%	3.12%

Institutional & Insider Ownership

24.2% of Tempus AI shares are held by institutional investors. Comparatively, 92.1% of Phreesia shares are held by institutional investors. 24.3% of Tempus AI shares are held by insiders. Comparatively, 5.2% of Phreesia shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Tempus AI and Phreesia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	$1.27 billion	6.03	-$245.03 million	($1.72)	-24.82
Phreesia	$480.59 million	1.31	$2.31 million	$0.15	68.11

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

Volatility & Risk

Tempus AI has a beta of 3.46, meaning that its stock price is 246% more volatile than the S&P 500. Comparatively, Phreesia has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Summary

Phreesia beats Tempus AI on 8 of the 13 factors compared between 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 Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.