American Well (NYSE:AMWL) vs. Tempus AI (NASDAQ:TEM) Head-To-Head Review

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

Earnings and Valuation

This table compares Tempus AI and American Well”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	7.01	-$245.03 million	($1.72)	-28.99
American Well	$249.32 million	0.53	-$95.70 million	($5.42)	-1.46

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Tempus AI and American Well, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	2	3	9	0	2.50
American Well	1	4	1	0	2.00

Tempus AI currently has a consensus target price of $70.86, indicating a potential upside of 42.11%. American Well has a consensus target price of $7.30, indicating a potential downside of 8.00%. Given Tempus AI’s stronger consensus rating and higher probable upside, research analysts plainly believe Tempus AI is more favorable than American Well.

Institutional and Insider Ownership

24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 56.1% of American Well shares are owned by institutional investors. 24.3% of Tempus AI shares are owned by insiders. Comparatively, 11.8% of American Well shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Tempus AI and American Well’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%
American Well	-37.02%	-32.11%	-24.12%

Risk & Volatility

Tempus AI has a beta of 3.99, indicating that its share price is 299% more volatile than the S&P 500. Comparatively, American Well has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Summary

Tempus AI beats American Well on 10 of the 14 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 American Well

American Well Corporation, an enterprise platform and software company, delivers digitally enabling hybrid care in the United States and internationally. The company offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care; and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health, as well as specialty care programs, including dermatology, musculoskeletal care, second opinion, and cardiometabolic care to patients and members. It provides Carepoint devices comprising carts, peripherals, tablets, and TVs, which serve as digital access points in clinical settings. In addition, the company offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, acute psychiatry, lactation counseling, and nutrition services. Further, it provides professional services to facilitate implementation, workflow design, systems integration, and service expansion for its products, as well as patient and provider engagement services. The company sells its products through field sales professionals, channel partners, and value-added resellers. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.