Tempus AI (NASDAQ:TEM) vs. Schrodinger (NASDAQ:SDGR) Head to Head Contrast

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

Analyst Ratings

This is a breakdown of current ratings for Schrodinger and Tempus AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrodinger	1	4	4	0	2.33
Tempus AI	1	4	8	0	2.54

Schrodinger presently has a consensus price target of $21.13, indicating a potential upside of 90.66%. Tempus AI has a consensus price target of $78.62, indicating a potential upside of 84.46%. Given Schrodinger’s higher possible upside, equities research analysts clearly believe Schrodinger is more favorable than Tempus AI.

Insider and Institutional Ownership

79.1% of Schrodinger shares are held by institutional investors. Comparatively, 24.2% of Tempus AI shares are held by institutional investors. 21.0% of Schrodinger shares are held by company insiders. Comparatively, 26.3% of Tempus AI shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Schrodinger	-40.37%	-29.47%	-14.69%
Tempus AI	-19.27%	-53.30%	-11.28%

Risk and Volatility

Schrodinger has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 5.29, meaning that its share price is 429% more volatile than the S&P 500.

Earnings and Valuation

This table compares Schrodinger and Tempus AI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schrodinger	$255.87 million	3.20	-$103.26 million	($1.42)	-7.80
Tempus AI	$1.27 billion	5.99	-$245.03 million	($1.41)	-30.23

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

Summary

Tempus AI beats Schrodinger on 9 of the 14 factors compared between the two stocks.

About Schrodinger

Schrödinger, Inc., together with its subsidiaries, develops physics-based computational platform that enables discovery of novel molecules for drug development and materials applications. The company operates in two segments, Software and Drug Discovery. The Software segment is focused on licensing its software to transform molecular discovery for life sciences and materials science industries. The Drug Discovery segment focuses on building a portfolio of preclinical and clinical programs, internally and through collaborations. The company serves biopharmaceutical and industrial companies, academic institutions, and government laboratories worldwide. Schrödinger, Inc. was incorporated in 1990 and is based in New York, New York.

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.