Critical Survey: OPKO Health (NASDAQ:OPK) versus Tempus AI (NASDAQ:TEM)

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for OPKO Health and Tempus AI, as reported by MarketBeat.

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

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

Earnings & Valuation

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

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

OPKO Health has higher earnings, but lower revenue 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.

Volatility and Risk

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

Institutional and Insider Ownership

64.6% of OPKO Health shares are held by institutional investors. Comparatively, 24.2% of Tempus AI shares are held by institutional investors. 44.7% of OPKO Health shares are held by company insiders. Comparatively, 24.3% of Tempus AI shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OPKO Health	-12.40%	-5.88%	-3.83%
Tempus AI	-17.77%	-50.28%	-10.33%

Summary

OPKO Health beats Tempus AI on 10 of the 15 factors compared between the two stocks.

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.

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.