Critical Analysis: Tempus AI (NASDAQ:TEM) & Omnicell (NASDAQ:OMCL)

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

Institutional & Insider Ownership

97.7% of Omnicell shares are held by institutional investors. Comparatively, 24.2% of Tempus AI shares are held by institutional investors. 2.5% of Omnicell shares are held by insiders. Comparatively, 26.3% of Tempus AI shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Omnicell has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Tempus AI has a beta of 4.86, indicating that its stock price is 386% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omnicell	2.01%	4.27%	2.44%
Tempus AI	-18.45%	-73.21%	-13.78%

Earnings and Valuation

This table compares Omnicell and Tempus AI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicell	$1.18 billion	1.39	$12.53 million	$0.43	83.16
Tempus AI	$693.40 million	18.06	-$705.81 million	($1.19)	-60.58

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

Analyst Recommendations

This is a breakdown of recent recommendations for Omnicell and Tempus AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicell	1	2	3	0	2.33
Tempus AI	1	8	7	0	2.38

Omnicell presently has a consensus target price of $42.00, suggesting a potential upside of 17.45%. Tempus AI has a consensus target price of $80.54, suggesting a potential upside of 11.72%. Given Omnicell’s higher possible upside, equities analysts plainly believe Omnicell is more favorable than Tempus AI.

Summary

Omnicell beats Tempus AI on 9 of the 14 factors compared between the two stocks.

About Omnicell

Omnicell, Inc., together with its subsidiaries, provides medication management solutions and adherence tools for healthcare systems and pharmacies the United States and internationally. The company offers point of care automation solutions to improve clinician workflows in patient care areas of the healthcare system; XT Series automated dispensing systems for medications and supplies used in nursing units and other clinical areas of the hospital, as well as specialized automated dispensing systems for operating room; and robotic dispensing systems for handling the stocking and retrieval of boxed medications. It also provides central pharmacy automation solutions; IV compounding robots; and inventory management software. In addition, the company provides single-dose automation solutions that fill and label a variety of patient-specific, single-dose medication blister packaging based on incoming prescriptions; fully automated and semi-automated filling equipment for institutional pharmacies to warrant automated packaging of medications; and medication blister card packaging and packaging supplies to enhance medication adherence in non-acute care settings. Further, it offers EnlivenHealth Patient Engagement, a web-based solutions. The company was formerly known as Omnicell Technologies, Inc. and changed its name to Omnicell, Inc. in 2001. Omnicell, Inc. was incorporated in 1992 and is headquartered in Fort Worth, Texas.

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.