Tempus AI (NASDAQ:TEM – Get Free Report) and Health Catalyst (NASDAQ:HCAT – Get Free Report) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 85.0% of Health Catalyst shares are owned by institutional investors. 26.3% of Tempus AI shares are owned by insiders. Comparatively, 2.6% of Health Catalyst shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for Tempus AI and Health Catalyst, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tempus AI | 1 | 4 | 8 | 0 | 2.54 |
| Health Catalyst | 1 | 8 | 4 | 0 | 2.23 |
Risk and Volatility
Tempus AI has a beta of 5.29, suggesting that its stock price is 429% more volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.
Profitability
This table compares Tempus AI and Health Catalyst’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tempus AI | -19.27% | -53.30% | -11.28% |
| Health Catalyst | -57.20% | -4.30% | -2.16% |
Earnings and Valuation
This table compares Tempus AI and Health Catalyst”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tempus AI | $1.27 billion | 6.60 | -$245.03 million | ($1.41) | -33.30 |
| Health Catalyst | $311.14 million | 0.29 | -$177.97 million | ($2.54) | -0.48 |
Health Catalyst has lower revenue, but higher earnings than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.
Summary
Tempus AI beats Health Catalyst on 8 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 Health Catalyst
Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.
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