RadNet (NASDAQ:RDNT – Get Free Report) and Tempus AI (NASDAQ:TEM – Get Free Report) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.
Institutional & Insider Ownership
77.9% of RadNet shares are held by institutional investors. Comparatively, 24.2% of Tempus AI shares are held by institutional investors. 5.1% of RadNet 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 is poised for long-term growth.
Risk and Volatility
RadNet has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 3.61, suggesting that its share price is 261% more volatile than the S&P 500.
Profitability
This table compares RadNet and Tempus AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RadNet | -0.93% | 2.61% | 0.91% |
| Tempus AI | -12.54% | -48.29% | -9.64% |
Earnings & Valuation
This table compares RadNet and Tempus AI”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RadNet | $2.04 billion | 3.09 | -$18.65 million | ($0.27) | -296.78 |
| Tempus AI | $1.27 billion | 10.75 | -$245.03 million | ($1.44) | -52.62 |
RadNet has higher revenue and earnings than Tempus AI. RadNet is trading at a lower price-to-earnings ratio than Tempus AI, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and price targets for RadNet and Tempus AI, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RadNet | 1 | 0 | 5 | 3 | 3.11 |
| Tempus AI | 1 | 10 | 11 | 0 | 2.45 |
RadNet presently has a consensus target price of $90.00, indicating a potential upside of 12.32%. Tempus AI has a consensus target price of $79.37, indicating a potential upside of 4.74%. Given RadNet’s stronger consensus rating and higher probable upside, research analysts plainly believe RadNet is more favorable than Tempus AI.
Summary
RadNet beats Tempus AI on 10 of the 15 factors compared between the two stocks.
About RadNet
RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The company operates in two segments: Imaging Centers and Artificial Intelligence. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems that distribute, display, store, and retrieve digital images; offers picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of breast, lung, and prostate images, as well as AI solutions for prostate cancer screening. RadNet, Inc. was founded in 1981 and is headquartered in Los Angeles, 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.
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