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

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 earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 77.9% of RadNet shares are owned by institutional investors. 24.3% of Tempus AI shares are owned by insiders. Comparatively, 5.1% of RadNet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	$1.27 billion	10.25	-$245.03 million	($1.44)	-50.15
RadNet	$2.04 billion	2.83	-$18.65 million	($0.27)	-272.19

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.

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	-17.77%	-50.28%	-10.33%
RadNet	-0.93%	2.61%	0.91%

Volatility & Risk

Tempus AI has a beta of 3.61, meaning that its stock price is 261% more volatile than the S&P 500. Comparatively, RadNet has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings 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 presently has a consensus price target of $72.47, indicating a potential upside of 0.35%. RadNet has a consensus price target of $90.00, indicating a potential upside of 22.47%. Given RadNet’s stronger consensus rating and higher possible upside, analysts plainly believe RadNet is more favorable than Tempus AI.

Summary

RadNet beats Tempus AI on 10 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 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.