Critical Comparison: Tempus AI (NASDAQ:TEM) & Phreesia (NYSE:PHR)

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

Insider & Institutional Ownership

92.1% of Phreesia shares are owned by institutional investors. Comparatively, 24.2% of Tempus AI shares are owned by institutional investors. 5.2% of Phreesia shares are owned by company insiders. Comparatively, 24.3% of Tempus AI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Phreesia	1.85%	5.13%	3.12%
Tempus AI	-22.20%	-53.83%	-11.17%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$480.59 million	1.38	$2.31 million	$0.15	71.54
Tempus AI	$1.27 billion	7.41	-$245.03 million	($1.72)	-30.51

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

Volatility and Risk

Phreesia has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Tempus AI has a beta of 3.46, meaning that its share price is 246% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Phreesia and Tempus AI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	1	9	9	0	2.42
Tempus AI	2	4	9	0	2.47

Phreesia presently has a consensus price target of $16.65, suggesting a potential upside of 55.13%. Tempus AI has a consensus price target of $68.92, suggesting a potential upside of 31.36%. Given Phreesia’s higher possible upside, analysts clearly believe Phreesia is more favorable than Tempus AI.

Summary

Phreesia beats Tempus AI on 8 of the 13 factors compared between the two stocks.

About Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.

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.