Critical Review: Tempus AI (TEM) & The Competition

Tempus AI (NASDAQ:TEM) is one of 120 public companies in the “Computer programming, data processing, & other computer related” industry, but how does it contrast to its peers? We will compare Tempus AI to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, earnings, risk and profitability.

Institutional and Insider Ownership

24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 27.6% of Tempus AI shares are owned by company insiders. Comparatively, 17.2% of shares of all “Computer programming, data processing, & other computer related” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Tempus AI and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tempus AI	N/A	N/A	-111.38%
Tempus AI Competitors	-138.86%	-18.64%	-3.29%

Earnings and Valuation

This table compares Tempus AI and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tempus AI	$803.32 million	-$289.81 million	-8.00
Tempus AI Competitors	$11.62 billion	$2.53 billion	-35,285.56

Tempus AI’s peers have higher revenue and earnings than Tempus AI. Tempus AI is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for Tempus AI and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	0	6	7	0	2.54
Tempus AI Competitors	1311	5208	11541	349	2.59

Tempus AI currently has a consensus price target of $63.42, indicating a potential upside of 1.58%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 18.51%. Given Tempus AI’s peers stronger consensus rating and higher possible upside, analysts clearly believe Tempus AI has less favorable growth aspects than its peers.

Summary

Tempus AI peers beat Tempus AI on 8 of the 12 factors compared.

Tempus AI Company Profile

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.