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

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Phreesia and Tempus AI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	1	9	9	0	2.42
Tempus AI	2	5	9	0	2.44

Phreesia currently has a consensus price target of $16.65, suggesting a potential upside of 69.57%. Tempus AI has a consensus price target of $68.92, suggesting a potential upside of 49.80%. Given Phreesia’s higher probable upside, research analysts clearly believe Phreesia is more favorable than Tempus AI.

Institutional and Insider Ownership

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

Profitability

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

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

Volatility and Risk

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$480.59 million	1.26	$2.31 million	$0.15	65.45
Tempus AI	$1.27 billion	6.50	-$245.03 million	($1.72)	-26.75

Phreesia has higher earnings, but lower revenue 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 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.

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.