Health Catalyst (NASDAQ:HCAT – Get Free Report) and Tempus AI (NASDAQ:TEM – Get Free Report) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.
Volatility and Risk
Health Catalyst has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 5.29, meaning that its stock price is 429% more volatile than the S&P 500.
Institutional and Insider Ownership
85.0% of Health Catalyst shares are held by institutional investors. Comparatively, 24.2% of Tempus AI shares are held by institutional investors. 2.6% of Health Catalyst 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 will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Health Catalyst | $311.14 million | 0.26 | -$177.97 million | ($2.54) | -0.43 |
| Tempus AI | $1.27 billion | 6.57 | -$245.03 million | ($1.41) | -33.16 |
Health Catalyst has higher earnings, but lower revenue than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for Health Catalyst and Tempus AI, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Health Catalyst | 1 | 8 | 4 | 0 | 2.23 |
| Tempus AI | 1 | 4 | 8 | 0 | 2.54 |
Health Catalyst currently has a consensus price target of $2.80, indicating a potential upside of 154.13%. Tempus AI has a consensus price target of $78.62, indicating a potential upside of 68.13%. Given Health Catalyst’s higher possible upside, equities analysts plainly believe Health Catalyst is more favorable than Tempus AI.
Profitability
This table compares Health Catalyst and Tempus AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Health Catalyst | -57.20% | -4.30% | -2.16% |
| Tempus AI | -19.27% | -53.30% | -11.28% |
Summary
Tempus AI beats Health Catalyst on 8 of the 14 factors compared between the two stocks.
About Health Catalyst
Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.
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.
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