Financial Review: OPKO Health (NASDAQ:OPK) and Tempus AI (NASDAQ:TEM)

Tempus AI (NASDAQ:TEM) and OPKO Health (NASDAQ:OPK) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

This table compares Tempus AI and OPKO Health’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%
OPKO Health	-12.40%	-5.88%	-3.83%

Valuation and Earnings

This table compares Tempus AI and OPKO Health”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	$1.27 billion	9.65	-$245.03 million	($1.44)	-47.22
OPKO Health	$606.90 million	1.70	-$225.68 million	($0.09)	-15.33

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

Insider & Institutional Ownership

24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 64.6% of OPKO Health shares are owned by institutional investors. 24.3% of Tempus AI shares are owned by insiders. Comparatively, 44.7% of OPKO Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Tempus AI and OPKO Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	2	9	11	0	2.41
OPKO Health	1	3	1	1	2.33

Tempus AI currently has a consensus target price of $71.84, indicating a potential upside of 5.67%. OPKO Health has a consensus target price of $1.55, indicating a potential upside of 12.32%. Given OPKO Health’s higher probable upside, analysts plainly believe OPKO Health is more favorable than Tempus AI.

Volatility and Risk

Tempus AI has a beta of 3.54, suggesting that its share price is 254% more volatile than the S&P 500. Comparatively, OPKO Health has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Summary

OPKO Health 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 OPKO Health

OPKO Health, Inc., a healthcare company, engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally. The company's Diagnostics segment operates BioReference Laboratories that offers laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases, including esoteric testing, molecular diagnostics, anatomical pathology, genetics, women's health, and correctional healthcare to physician offices, clinics, hospitals, employers, and governmental units; and 4Kscore prostate cancer test. Its Pharmaceutical segment offers Rayaldee to treat secondary hyperparathyroidism in adults with stage 3 or 4 chronic kidney disease, and vitamin D insufficiency. This segment also develops multi-specific immune therapies focused on oncology, infectious diseases, vaccines, and immunology; OPK88004, an orally administered selective androgen receptor modulator; OPK88003, a once-weekly administered peptide for the treatment of type 2 diabetes and related obesity; Somatrogon (hGH-CTP), a once-weekly human growth hormone injection; and Factor VIIa-CTP, a novel long-acting coagulation factor being developed to treat hemophilia. In addition, it develops and commercializes longer-acting proprietary versions of already approved therapeutic proteins; develops and produces specialty APIs; develops, manufactures, markets, and sells pharmaceutical, nutraceutical, veterinary, and ophthalmic products; commercializes food supplements and over the counter products; manufactures and sells products primarily in the generics market; and markets, distributes, and sells pharmaceutical products in a range of indications, including cardiovascular products, vaccines, antibiotics, gastro-intestinal products, hormones, and others. The company also operates pharmaceutical platforms in Ireland, Chile, Spain, and Mexico. The company was founded in 1991 and is headquartered in Miami, Florida.