Head-To-Head Analysis: Tempus AI (NASDAQ:TEM) & RadNet (NASDAQ:RDNT)

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

Institutional and Insider Ownership

24.2% of Tempus AI shares are held by institutional investors. Comparatively, 77.9% of RadNet shares are held by institutional investors. 24.3% of Tempus AI shares are held by company insiders. Comparatively, 5.1% of RadNet shares are held 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 Tempus AI and RadNet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tempus AI	N/A	N/A	N/A
RadNet	N/A	N/A	N/A

Earnings and Valuation

This table compares Tempus AI and RadNet”s 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	9.09	-$259.83 million	($1.44)	-50.10
RadNet	$2.27 billion	2.55	-$21.25 million	($0.27)	-272.37

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

Risk and Volatility

Tempus AI has a beta of 3.54, meaning that its stock price is 254% more volatile than the S&P 500. Comparatively, RadNet has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Tempus AI and RadNet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	2	9	11	0	2.41
RadNet	1	0	5	3	3.11

Tempus AI currently has a consensus target price of $72.47, suggesting a potential upside of 0.45%. RadNet has a consensus target price of $90.00, suggesting a potential upside of 22.38%. Given RadNet’s stronger consensus rating and higher possible upside, analysts clearly believe RadNet is more favorable than Tempus AI.

Summary

RadNet beats Tempus AI on 7 of the 12 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 RadNet

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The company operates in two segments: Imaging Centers and Artificial Intelligence. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems that distribute, display, store, and retrieve digital images; offers picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of breast, lung, and prostate images, as well as AI solutions for prostate cancer screening. RadNet, Inc. was founded in 1981 and is headquartered in Los Angeles, California.