Contrasting Tempus AI (NASDAQ:TEM) and P3 Health Partners (NASDAQ:PIII)

P3 Health Partners (NASDAQ:PIII – Get Free Report) and Tempus AI (NASDAQ:TEM – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Risk and Volatility

P3 Health Partners has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 3.54, meaning that its stock price is 254% more volatile than the S&P 500.

Earnings and Valuation

This table compares P3 Health Partners and Tempus AI”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
P3 Health Partners $1.46 billion 0.02 -$147.95 million ($33.00) -0.13
Tempus AI $1.27 billion 11.04 -$245.03 million ($1.44) -54.06

P3 Health Partners has higher revenue and earnings than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than P3 Health Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for P3 Health Partners and Tempus AI, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
P3 Health Partners 1 2 1 0 2.00
Tempus AI 2 9 11 0 2.41

P3 Health Partners currently has a consensus target price of $17.00, indicating a potential upside of 304.76%. Tempus AI has a consensus target price of $72.47, indicating a potential downside of 6.89%. Given P3 Health Partners’ higher probable upside, equities analysts clearly believe P3 Health Partners is more favorable than Tempus AI.

Profitability

This table compares P3 Health Partners and Tempus AI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
P3 Health Partners -6.55% N/A -16.40%
Tempus AI -17.77% -50.28% -10.33%

Institutional and Insider Ownership

7.7% of P3 Health Partners shares are owned by institutional investors. Comparatively, 24.2% of Tempus AI shares are owned by institutional investors. 10.9% of P3 Health Partners shares are owned by company insiders. Comparatively, 24.3% of Tempus AI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Tempus AI beats P3 Health Partners on 8 of the 14 factors compared between the two stocks.

About P3 Health Partners

(Get Free Report)

P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. P3 Health Partners Inc. was founded in 2020 and is based in Henderson, Nevada.

About Tempus AI

(Get Free Report)

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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