Reviewing Phreesia (NYSE:PHR) & Tempus AI (NASDAQ:TEM)

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

Insider & Institutional Ownership

24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 92.1% of Phreesia shares are owned by institutional investors. 24.3% of Tempus AI shares are owned by insiders. Comparatively, 5.2% of Phreesia shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

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

Analyst Recommendations

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

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

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

Volatility & Risk

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

Valuation and Earnings

This table compares Tempus AI and Phreesia”s top-line revenue, earnings per share (EPS) and valuation.

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

Phreesia has lower revenue, but higher earnings 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.

Summary

Phreesia beats Tempus AI on 8 of the 13 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 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.