Reviewing American Well (NYSE:AMWL) & Tempus AI (NASDAQ:TEM)

American Well (NYSE:AMWL) and Tempus AI (NASDAQ:TEM) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Valuation & Earnings

This table compares American Well and Tempus AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Well	$249.32 million	0.50	-$95.70 million	($5.42)	-1.40
Tempus AI	$1.36 billion	5.78	-$245.03 million	($1.72)	-25.54

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Well	-37.02%	-32.11%	-24.12%
Tempus AI	-22.20%	-53.83%	-11.17%

Analyst Recommendations

This is a summary of recent ratings and target prices for American Well and Tempus AI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Well	1	4	1	0	2.00
Tempus AI	2	3	9	0	2.50

American Well presently has a consensus target price of $7.30, suggesting a potential downside of 3.82%. Tempus AI has a consensus target price of $68.64, suggesting a potential upside of 56.26%. Given Tempus AI’s stronger consensus rating and higher possible upside, analysts plainly believe Tempus AI is more favorable than American Well.

Insider and Institutional Ownership

56.1% of American Well shares are owned by institutional investors. Comparatively, 24.2% of Tempus AI shares are owned by institutional investors. 11.8% of American Well shares are owned by company insiders. Comparatively, 24.3% of Tempus AI shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

American Well has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 3.99, indicating that its share price is 299% more volatile than the S&P 500.

Summary

Tempus AI beats American Well on 10 of the 14 factors compared between the two stocks.

About American Well

American Well Corporation, an enterprise platform and software company, delivers digitally enabling hybrid care in the United States and internationally. The company offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care; and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health, as well as specialty care programs, including dermatology, musculoskeletal care, second opinion, and cardiometabolic care to patients and members. It provides Carepoint devices comprising carts, peripherals, tablets, and TVs, which serve as digital access points in clinical settings. In addition, the company offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, acute psychiatry, lactation counseling, and nutrition services. Further, it provides professional services to facilitate implementation, workflow design, systems integration, and service expansion for its products, as well as patient and provider engagement services. The company sells its products through field sales professionals, channel partners, and value-added resellers. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.

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.