Tempus AI (NASDAQ:TEM) versus Butterfly Network (NYSE:BFLY) Financial Contrast

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

Earnings & Valuation

This table compares Tempus AI and Butterfly Network”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	$693.40 million	15.20	-$705.81 million	($7.80)	-7.80
Butterfly Network	$82.06 million	4.10	-$72.49 million	($0.28)	-4.77

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

Volatility and Risk

Tempus AI has a beta of 4.98, suggesting that its stock price is 398% more volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.45, suggesting that its stock price is 145% more volatile than the S&P 500.

Profitability

This table compares Tempus AI and Butterfly Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tempus AI	-88.27%	-533.21%	-66.19%
Butterfly Network	-71.79%	-30.53%	-21.80%

Institutional & Insider Ownership

24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 37.9% of Butterfly Network shares are owned by institutional investors. 27.6% of Tempus AI shares are owned by company insiders. Comparatively, 25.2% of Butterfly Network shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Tempus AI and Butterfly Network, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	0	6	6	0	2.50
Butterfly Network	0	1	3	0	2.75

Tempus AI presently has a consensus price target of $65.0909, indicating a potential upside of 6.93%. Butterfly Network has a consensus price target of $3.00, indicating a potential upside of 124.72%. Given Butterfly Network’s stronger consensus rating and higher probable upside, analysts clearly believe Butterfly Network is more favorable than Tempus AI.

Summary

Butterfly Network 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 Butterfly Network

Butterfly Network, Inc. develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+ and iQ3 ultrasound devices that can perform whole-body imaging in a single handheld probe integrated with the clinical workflow, and accessible on a user's smartphone, tablet, and almost any hospital computer system; and Butterfly iQ+ Vet, a handheld ultrasound system designed for veterinarians. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as professional services for large scale deployments; and ScanLab, an education-only app provides written walkthroughs and reference imagery to guide real-time educational scanning, enhancing the learning process. Butterfly Network, Inc. was founded in 2011 and is headquartered in Burlington, Massachusetts.