Tempus AI (NASDAQ:TEM – Get Free Report) and Inspire Medical Systems (NYSE:INSP – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.
Insider & Institutional Ownership
24.2% of Tempus AI shares are held by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are held by institutional investors. 26.3% of Tempus AI shares are held by insiders. Comparatively, 4.1% of Inspire Medical Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Tempus AI and Inspire Medical Systems”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tempus AI | $693.40 million | 17.93 | -$705.81 million | ($1.19) | -60.13 |
| Inspire Medical Systems | $882.62 million | 2.69 | $53.51 million | $1.47 | 55.54 |
Inspire Medical Systems has higher revenue and earnings than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than Inspire Medical Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Tempus AI and Inspire Medical Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tempus AI | 1 | 8 | 7 | 0 | 2.38 |
| Inspire Medical Systems | 1 | 8 | 8 | 0 | 2.41 |
Tempus AI currently has a consensus price target of $79.85, suggesting a potential upside of 11.58%. Inspire Medical Systems has a consensus price target of $133.88, suggesting a potential upside of 63.97%. Given Inspire Medical Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Inspire Medical Systems is more favorable than Tempus AI.
Volatility & Risk
Tempus AI has a beta of 4.86, suggesting that its share price is 386% more volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
Profitability
This table compares Tempus AI and Inspire Medical Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tempus AI | -18.45% | -73.21% | -13.78% |
| Inspire Medical Systems | 5.05% | 9.41% | 7.97% |
Summary
Inspire Medical Systems beats Tempus AI on 11 of the 14 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 Inspire Medical Systems
Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and internationally. The company offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA. It also develops a novel, closed-loop solution that continuously monitors a patient's breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The company was incorporated in 2007 and is headquartered in Golden Valley, Minnesota.
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