Exagen (NASDAQ:XGN) vs. Tempus AI (NASDAQ:TEM) Financial Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tempus AI	-17.77%	-50.28%	-10.33%
Exagen	-26.61%	-104.46%	-28.93%

Volatility and Risk

Tempus AI has a beta of 3.54, indicating that its stock price is 254% more volatile than the S&P 500. Comparatively, Exagen has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500.

Valuation and Earnings

This table compares Tempus AI and Exagen”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	$1.43 billion	9.65	-$245.03 million	($1.44)	-53.20
Exagen	$71.12 million	2.86	-$19.95 million	($0.81)	-10.37

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

Analyst Recommendations

This is a summary of current recommendations for Tempus AI and Exagen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	2	9	11	0	2.41
Exagen	1	0	7	1	2.89

Tempus AI presently has a consensus price target of $72.47, indicating a potential downside of 5.40%. Exagen has a consensus price target of $10.12, indicating a potential upside of 20.54%. Given Exagen’s stronger consensus rating and higher possible upside, analysts clearly believe Exagen is more favorable than Tempus AI.

Institutional & Insider Ownership

24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 75.2% of Exagen shares are owned by institutional investors. 24.3% of Tempus AI shares are owned by company insiders. Comparatively, 10.4% of Exagen shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Tempus AI beats Exagen on 8 of the 15 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 Exagen

Exagen Inc. develops and commercializes various testing products under the AVISE brand in the United States. The company enables healthcare providers to care for patients through the diagnosis, prognosis, and monitoring of autoimmune and autoimmune-related diseases, including systemic lupus erythematosus (SLE) and rheumatoid arthritis (RA). Its lead testing product is AVISE CTD that enables differential diagnosis for patients presenting with symptoms indicative of various connective tissue diseases (CTDs) and other related diseases with overlapping symptoms. The company offers AVISE Lupus that measures activation of the complement system by quantifying the level of B-cell C4d and erythrocyte bound C4d in the patient's blood; and AVISE APS, which consists of a panel of autoantibody tests that aids in the diagnosis and management of APS. In addition, it provides AVISE Vasculitis AAV, which utilizes a testing panel of individual analytes to provide physicians with results in the assessment and monitoring of anti-neutrophil cytoplasmic antibody associated vasculitis; AVISE SLE Prognostic, a panel of autoantibodies for assessing the potential for complications affecting the kidney, brain, and cardiovascular system; and AVISE Anti-CarP test, which identifies RA patients with severe disease. Further, the company offers AVISE SLE Monitor, a biomarker blood test; AVISE MTX, a patented and validated blood test; and AVISE HCQ, a blood test to monitor levels of hydroxychloroquine. It has a research collaboration and license agreement with Allegheny Health Network (AHN) Research Institute to develop novel patented biomarkers. The company was formerly known as Exagen Diagnostics, Inc. and changed its name to Exagen Inc. in January 2019. Exagen Inc. was incorporated in 2002 and is headquartered in Vista, California.