Tempus AI (NASDAQ:TEM – Get Free Report) and Alignment Healthcare (NASDAQ:ALHC – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
Valuation & Earnings
This table compares Tempus AI and Alignment Healthcare”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tempus AI | $1.27 billion | 10.79 | -$245.03 million | ($1.06) | -71.75 |
| Alignment Healthcare | $3.95 billion | 0.39 | -$720,000.00 | $0.13 | 56.46 |
Alignment Healthcare has higher revenue and earnings than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than Alignment Healthcare, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Tempus AI has a beta of 3.61, meaning that its share price is 261% more volatile than the S&P 500. Comparatively, Alignment Healthcare has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Profitability
This table compares Tempus AI and Alignment Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tempus AI | -12.54% | -47.00% | -9.44% |
| Alignment Healthcare | 0.59% | 12.46% | 2.36% |
Analyst Recommendations
This is a breakdown of current ratings for Tempus AI and Alignment Healthcare, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tempus AI | 1 | 10 | 11 | 0 | 2.45 |
| Alignment Healthcare | 1 | 6 | 6 | 0 | 2.38 |
Tempus AI currently has a consensus target price of $79.37, indicating a potential upside of 4.36%. Alignment Healthcare has a consensus target price of $14.00, indicating a potential upside of 90.74%. Given Alignment Healthcare’s higher probable upside, analysts plainly believe Alignment Healthcare is more favorable than Tempus AI.
Institutional and Insider Ownership
24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 86.2% of Alignment Healthcare shares are owned by institutional investors. 24.3% of Tempus AI shares are owned by company insiders. Comparatively, 5.2% of Alignment Healthcare shares are owned by company 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.
Summary
Alignment Healthcare beats Tempus AI on 9 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 Alignment Healthcare
Alignment Healthcare, Inc., a tech-enabled Medicare advantage company, operates consumer-centric health care platform for seniors in the United States. It provides customized health care designed to meet the needs of a diverse array of seniors through its Medicare advantage plans. The company was founded in 2013 and is based in Orange, California.
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