Critical Contrast: Tempo Automation (NASDAQ:TMPO) versus Rockley Photonics (NYSE:RKLY)

Tempo Automation (NASDAQ:TMPOGet Rating) and Rockley Photonics (NYSE:RKLYGet Rating) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Profitability

This table compares Tempo Automation and Rockley Photonics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tempo Automation N/A -110.63% -3.15%
Rockley Photonics -3,061.94% -589.47% -104.40%

Earnings & Valuation

This table compares Tempo Automation and Rockley Photonics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tempo Automation N/A N/A $5.85 million N/A N/A
Rockley Photonics $8.21 million 3.36 -$168.01 million ($1.48) -0.14

Tempo Automation has higher earnings, but lower revenue than Rockley Photonics.

Insider and Institutional Ownership

15.7% of Rockley Photonics shares are owned by institutional investors. 34.2% of Tempo Automation shares are owned by insiders. Comparatively, 13.6% of Rockley Photonics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Tempo Automation has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, Rockley Photonics has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Tempo Automation and Rockley Photonics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tempo Automation 0 1 1 0 2.50
Rockley Photonics 0 3 3 0 2.50

Tempo Automation presently has a consensus target price of $3.00, indicating a potential upside of 129.01%. Rockley Photonics has a consensus target price of $3.83, indicating a potential upside of 1,747.39%. Given Rockley Photonics’ higher possible upside, analysts plainly believe Rockley Photonics is more favorable than Tempo Automation.

About Tempo Automation

(Get Rating)

Tempo Automation Holdings, Inc. manufactures electronic products. The company designs and assembles printed circuit boards. It serves automotive, aviation and defense, consumer electronics, design firms, energy, industrial technology, medical device, semiconductor, and space industries. The company was founded in 2013 and is based in San Francisco, California.

About Rockley Photonics

(Get Rating)

Rockley Photonics Holdings Limited develops and supplies silicon photonics in the United Kingdom and internationally. It offers a platform, which comprises photonic integrated circuits in silicon with integrated III-V devices; application-specific electronic integrated circuits; photonic and electronic co-packaging, which are supported by and coupled with biosensing algorithms, artificial intelligence, cloud analytics, firmware/software, system architecture, and hardware design. The company also provides a biosensing platform for consumer wellness, long-term health trend monitoring, patient monitoring, early disease detection, nutrition management, and treatment of certain chronic diseases. Rockley Photonics Holdings Limited was founded in 2013 and is headquartered in Altrincham, the United Kingdom.

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