Financial Contrast: Alignment Healthcare (NASDAQ:ALHC) & Tempus AI (NASDAQ:TEM)

Alignment Healthcare (NASDAQ:ALHC) and Tempus AI (NASDAQ:TEM) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alignment Healthcare	0.59%	13.32%	2.41%
Tempus AI	-17.77%	-50.28%	-10.33%

Insider and Institutional Ownership

86.2% of Alignment Healthcare shares are held by institutional investors. Comparatively, 24.2% of Tempus AI shares are held by institutional investors. 5.2% of Alignment Healthcare shares are held by insiders. Comparatively, 24.3% of Tempus AI shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Alignment Healthcare and Tempus AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alignment Healthcare	1	6	6	0	2.38
Tempus AI	2	9	11	0	2.41

Alignment Healthcare presently has a consensus target price of $14.27, suggesting a potential upside of 96.32%. Tempus AI has a consensus target price of $72.47, suggesting a potential upside of 0.35%. Given Alignment Healthcare’s higher probable upside, equities analysts clearly believe Alignment Healthcare is more favorable than Tempus AI.

Earnings & Valuation

This table compares Alignment Healthcare and Tempus AI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alignment Healthcare	$3.95 billion	0.38	-$720,000.00	$0.13	55.92
Tempus AI	$1.27 billion	10.25	-$245.03 million	($1.44)	-50.15

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

Volatility and Risk

Alignment Healthcare has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 3.54, meaning that its stock price is 254% more volatile than the S&P 500.

Summary

Alignment Healthcare beats Tempus AI on 9 of the 14 factors compared between the two stocks.

About Alignment Healthcare

Alignment Healthcare, Inc., a tech-enabled Medicare advantage company, operates consumer-centric health care platform for seniors in the United States. It provides customized health care designed to meet the needs of a diverse array of seniors through its Medicare advantage plans. The company was founded in 2013 and is based in Orange, California.

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.