Reviewing Tempus AI (NASDAQ:TEM) and Alphabet (NASDAQ:GOOG)

Alphabet (NASDAQ:GOOG) and Tempus AI (NASDAQ:TEM) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Valuation & Earnings

This table compares Alphabet and Tempus AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$359.71 billion	5.66	$100.12 billion	$8.97	18.71
Tempus AI	$803.32 million	14.08	-$289.81 million	($7.80)	-8.42

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alphabet	28.60%	32.49%	23.52%
Tempus AI	N/A	N/A	-111.38%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Alphabet and Tempus AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	3	5	14	5	2.78
Tempus AI	0	6	7	0	2.54

Alphabet currently has a consensus target price of $203.94, suggesting a potential upside of 21.50%. Tempus AI has a consensus target price of $63.42, suggesting a potential downside of 3.44%. Given Alphabet’s stronger consensus rating and higher possible upside, equities analysts clearly believe Alphabet is more favorable than Tempus AI.

Insider and Institutional Ownership

27.3% of Alphabet shares are held by institutional investors. Comparatively, 24.2% of Tempus AI shares are held by institutional investors. 13.0% of Alphabet shares are held by insiders. Comparatively, 27.6% of Tempus AI shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Alphabet beats Tempus AI on 12 of the 14 factors compared between the two stocks.

About Alphabet

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.

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.