American Well (NYSE:AMWL – Get Free Report) and Tempus AI (NASDAQ:TEM – Get Free Report) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Insider and Institutional Ownership
56.1% of American Well shares are owned by institutional investors. Comparatively, 24.2% of Tempus AI shares are owned by institutional investors. 11.8% of American Well 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, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for American Well and Tempus AI, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Well | 1 | 4 | 1 | 0 | 2.00 |
| Tempus AI | 2 | 3 | 9 | 0 | 2.50 |
Profitability
This table compares American Well and Tempus AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Well | -37.02% | -32.11% | -24.12% |
| Tempus AI | -22.20% | -53.83% | -11.17% |
Earnings and Valuation
This table compares American Well and Tempus AI”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Well | $249.32 million | 0.53 | -$95.70 million | ($5.42) | -1.46 |
| Tempus AI | $1.27 billion | 7.01 | -$245.03 million | ($1.72) | -28.99 |
American Well has higher earnings, but lower revenue than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than American Well, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
American Well has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 3.99, suggesting that its stock price is 299% more volatile than the S&P 500.
Summary
Tempus AI beats American Well on 10 of the 14 factors compared between the two stocks.
About American Well
American Well Corporation, an enterprise platform and software company, delivers digitally enabling hybrid care in the United States and internationally. The company offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care; and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health, as well as specialty care programs, including dermatology, musculoskeletal care, second opinion, and cardiometabolic care to patients and members. It provides Carepoint devices comprising carts, peripherals, tablets, and TVs, which serve as digital access points in clinical settings. In addition, the company offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, acute psychiatry, lactation counseling, and nutrition services. Further, it provides professional services to facilitate implementation, workflow design, systems integration, and service expansion for its products, as well as patient and provider engagement services. The company sells its products through field sales professionals, channel partners, and value-added resellers. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.
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.
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