Financial Survey: Predictive Oncology (NASDAQ:POAI) versus Tempus AI (NASDAQ:TEM)

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

Analyst Ratings

This is a summary of recent ratings for Tempus AI and Predictive Oncology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	1	7	7	0	2.40
Predictive Oncology	1	0	0	0	1.00

Tempus AI currently has a consensus target price of $85.36, suggesting a potential upside of 32.43%. Given Tempus AI’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Tempus AI is more favorable than Predictive Oncology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tempus AI	-18.45%	-73.21%	-13.78%
Predictive Oncology	-5,065.23%	-732.73%	-235.55%

Valuation & Earnings

This table compares Tempus AI and Predictive Oncology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	$693.40 million	16.54	-$705.81 million	($1.19)	-54.17
Predictive Oncology	$1.66 million	11.28	-$12.66 million	($13.50)	-0.41

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

Institutional and Insider Ownership

24.2% of Tempus AI shares are held by institutional investors. Comparatively, 9.0% of Predictive Oncology shares are held by institutional investors. 26.3% of Tempus AI shares are held by company insiders. Comparatively, 1.2% of Predictive Oncology shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Tempus AI has a beta of 4.99, meaning that its stock price is 399% more volatile than the S&P 500. Comparatively, Predictive Oncology has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Summary

Tempus AI beats Predictive Oncology on 12 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 Predictive Oncology

Predictive Oncology Inc. operates as a science-driven company on the oncology drug discovery. It provides various solutions for the oncology drug development. The company, through the integration of scientific rigor and machine learning, has developed the ability to advance molecules into medicine by introducing human diversity earlier into the discovery process with the pairing of artificial intelligence and the biobank of approximately 150K tumor samples. It operates through four segments: Helomics, zPREDICTA, Soluble, and Skyline. The Helomics segment provides services that include the application of AI, collaboration projects, and clinical testing. The zPREDICTA segment develops organ-specific disease models that provide 3D reconstruction of human tissues representing each disease state and mimicking drug response for testing of anticancer agents. The Soluble segment provides services using a self-contained automated system that conducts self-interaction chromatography screens using additives and excipients included in protein formulations resulting in soluble and physically stable formulations for biologics. This segment also offers protein stability analysis services; protein solubility kits that allow rapid identification of soluble formulations; and proprietary technologies for bacterial endotoxin detection and removal. The Skyline segment provides STREAMWAY System, a wall-mounted fully automated system, which virtually eliminates exposure to blood, irrigation fluid, and other infectious fluids found in the healthcare environment. The company was formerly known as Precision Therapeutics Inc. and changed its name to Predictive Oncology Inc. in June 2019. Predictive Oncology Inc. was incorporated in 2002 and is headquartered in Eagan, Minnesota.