Head to Head Analysis: Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) & Tempus AI (NASDAQ:TEM)

Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) and Tempus AI (NASDAQ:TEM) are both large-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Fresenius Medical Care AG & Co. KGaA and Tempus AI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresenius Medical Care AG & Co. KGaA	5	7	0	0	1.58
Tempus AI	1	10	11	0	2.45

Fresenius Medical Care AG & Co. KGaA presently has a consensus target price of $23.42, suggesting a potential upside of 2.02%. Tempus AI has a consensus target price of $79.37, suggesting a potential downside of 4.12%. Given Fresenius Medical Care AG & Co. KGaA’s higher probable upside, analysts clearly believe Fresenius Medical Care AG & Co. KGaA is more favorable than Tempus AI.

Volatility & Risk

Fresenius Medical Care AG & Co. KGaA has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Tempus AI has a beta of 3.61, suggesting that its share price is 261% more volatile than the S&P 500.

Valuation & Earnings

This table compares Fresenius Medical Care AG & Co. KGaA and Tempus AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresenius Medical Care AG & Co. KGaA	$22.20 billion	0.55	$1.11 billion	$1.73	13.27
Tempus AI	$1.51 billion	9.90	-$245.03 million	($1.06)	-78.10

Fresenius Medical Care AG & Co. KGaA has higher revenue and earnings than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than Fresenius Medical Care AG & Co. KGaA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fresenius Medical Care AG & Co. KGaA and Tempus AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fresenius Medical Care AG & Co. KGaA	4.23%	9.08%	4.04%
Tempus AI	-12.54%	-47.00%	-9.44%

Institutional & Insider Ownership

8.4% of Fresenius Medical Care AG & Co. KGaA shares are held by institutional investors. Comparatively, 24.2% of Tempus AI shares are held by institutional investors. 24.3% of Tempus AI shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Fresenius Medical Care AG & Co. KGaA beats Tempus AI on 8 of the 14 factors compared between the two stocks.

About Fresenius Medical Care AG & Co. KGaA

Fresenius Medical Care AG provides dialysis and related services for individuals with renal diseases in Germany, North America, and internationally. The company offers dialysis treatment and related laboratory and diagnostic services through a network of outpatient dialysis clinics; materials, training, and patient support services comprising clinical monitoring, follow-up assistance, and arranging for delivery of the supplies to the patient's residence; and dialysis services under contract to hospitals in the United States for the hospitalized end-stage renal disease (ESRD) patients and for patients suffering from acute kidney failure. It also develops, manufactures, and distributes various health care products, including polysulfone dialyzers, hemodialysis machines, peritoneal dialysis cyclers, peritoneal dialysis solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, systems for water treatment, and acute cardiopulmonary and apheresis products. In addition, the company develops, acquires, and in-licenses renal pharmaceuticals; offers renal medications and supplies to patients at homes or to dialysis clinics; and provides vascular, cardiovascular, endovascular specialty, vascular care ambulatory surgery center, and physician nephrology and cardiology services. The company sells its products to dialysis clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. Fresenius Medical Care AG was incorporated in 1996 and is headquartered in Bad Homburg, Germany.

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.