Alphabet (NASDAQ:GOOGL) versus Tempus AI (NASDAQ:TEM) Head to Head Review

Alphabet (NASDAQ:GOOGL) and Tempus AI (NASDAQ:TEM) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

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	26.70%	30.49%	21.63%
Tempus AI	N/A	N/A	N/A

Valuation and Earnings

This table compares Alphabet and Tempus AI’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$328.28 billion	6.16	$73.80 billion	$6.52	25.10
Tempus AI	$595.57 million	10.72	N/A	N/A	N/A

Alphabet has higher revenue and earnings than Tempus AI.

Insider & Institutional Ownership

40.0% of Alphabet shares are held by institutional investors. 11.6% of Alphabet shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Alphabet and Tempus AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	0	6	28	1	2.86
Tempus AI	0	0	9	0	3.00

Alphabet presently has a consensus price target of $203.74, suggesting a potential upside of 24.48%. Tempus AI has a consensus price target of $46.25, suggesting a potential upside of 19.35%. Given Alphabet’s higher possible upside, equities analysts plainly believe Alphabet is more favorable than Tempus AI.

Summary

Alphabet beats Tempus AI on 9 of the 11 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.