Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) and Tempus AI (NASDAQ:TEM) Financial Review

Tempus AI (NASDAQ:TEM) and Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) are both large-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Insider and Institutional Ownership

24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 8.4% of Fresenius Medical Care AG & Co. KGaA shares are owned by institutional investors. 24.3% of Tempus AI 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 recommmendations for Tempus AI and Fresenius Medical Care AG & Co. KGaA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	2	9	11	0	2.41
Fresenius Medical Care AG & Co. KGaA	4	7	0	0	1.64

Tempus AI presently has a consensus price target of $73.21, suggesting a potential downside of 6.71%. Fresenius Medical Care AG & Co. KGaA has a consensus price target of $23.42, suggesting a potential upside of 3.49%. Given Fresenius Medical Care AG & Co. KGaA’s higher probable upside, analysts plainly believe Fresenius Medical Care AG & Co. KGaA is more favorable than Tempus AI.

Earnings & Valuation

This table compares Tempus AI and Fresenius Medical Care AG & Co. KGaA”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	$1.27 billion	11.13	-$245.03 million	($1.44)	-54.50
Fresenius Medical Care AG & Co. KGaA	$19.43 billion	0.62	$1.11 billion	$1.93	11.73

Fresenius Medical Care AG & Co. KGaA has higher revenue and earnings than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than Fresenius Medical Care AG & Co. KGaA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tempus AI and Fresenius Medical Care AG & Co. KGaA’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%
Fresenius Medical Care AG & Co. KGaA	4.83%	9.28%	4.16%

Volatility and Risk

Tempus AI has a beta of 3.61, suggesting that its stock price is 261% more volatile than the S&P 500. Comparatively, Fresenius Medical Care AG & Co. KGaA has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Summary

Fresenius Medical Care AG & Co. KGaA beats Tempus AI on 8 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 Fresenius Medical Care AG & Co. KGaA

Fresenius Medical Care AG provides dialysis and related services for individuals with renal diseases in Germany, North America, and internationally. The company offers dialysis treatment and related laboratory and diagnostic services through a network of outpatient dialysis clinics; materials, training, and patient support services comprising clinical monitoring, follow-up assistance, and arranging for delivery of the supplies to the patient's residence; and dialysis services under contract to hospitals in the United States for the hospitalized end-stage renal disease (ESRD) patients and for patients suffering from acute kidney failure. It also develops, manufactures, and distributes various health care products, including polysulfone dialyzers, hemodialysis machines, peritoneal dialysis cyclers, peritoneal dialysis solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, systems for water treatment, and acute cardiopulmonary and apheresis products. In addition, the company develops, acquires, and in-licenses renal pharmaceuticals; offers renal medications and supplies to patients at homes or to dialysis clinics; and provides vascular, cardiovascular, endovascular specialty, vascular care ambulatory surgery center, and physician nephrology and cardiology services. The company sells its products to dialysis clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. Fresenius Medical Care AG was incorporated in 1996 and is headquartered in Bad Homburg, Germany.