Tempus AI (NASDAQ:TEM) and Fulgent Genetics (NASDAQ:FLGT) Financial Review

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

Profitability

This table compares Tempus AI and Fulgent Genetics’ 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%
Fulgent Genetics	-23.04%	-3.24%	-2.97%

Valuation & Earnings

This table compares Tempus AI and Fulgent Genetics”s gross 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	7.01	-$245.03 million	($1.72)	-28.99
Fulgent Genetics	$322.67 million	1.47	-$60.51 million	($2.39)	-6.68

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

Volatility and Risk

Tempus AI has a beta of 3.99, suggesting that its stock price is 299% more volatile than the S&P 500. Comparatively, Fulgent Genetics has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Institutional & Insider Ownership

24.2% of Tempus AI shares are held by institutional investors. Comparatively, 48.1% of Fulgent Genetics shares are held by institutional investors. 24.3% of Tempus AI shares are held by company insiders. Comparatively, 36.2% of Fulgent Genetics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Tempus AI and Fulgent Genetics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	2	3	9	0	2.50
Fulgent Genetics	1	2	2	0	2.20

Tempus AI presently has a consensus price target of $70.86, suggesting a potential upside of 42.11%. Fulgent Genetics has a consensus price target of $27.00, suggesting a potential upside of 69.17%. Given Fulgent Genetics’ higher possible upside, analysts plainly believe Fulgent Genetics is more favorable than Tempus AI.

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 Fulgent Genetics

Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, California.