Comparing biote (NASDAQ:BTMD) and Tempus AI (NASDAQ:TEM)

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

Volatility and Risk

Tempus AI has a beta of 3.61, indicating that its stock price is 261% more volatile than the S&P 500. Comparatively, biote has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	$1.51 billion	9.02	-$245.03 million	($1.06)	-71.21
biote	$183.53 million	0.21	$27.05 million	($0.10)	-10.50

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tempus AI	-12.54%	-47.00%	-9.44%
biote	-1.08%	-8.84%	4.64%

Insider & Institutional Ownership

24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 21.7% of biote shares are owned by institutional investors. 24.3% of Tempus AI shares are owned by company insiders. Comparatively, 32.4% of biote shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Tempus AI and biote, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	1	10	11	0	2.45
biote	1	1	1	1	2.50

Tempus AI currently has a consensus target price of $79.37, indicating a potential upside of 5.15%. biote has a consensus target price of $2.50, indicating a potential upside of 138.10%. Given biote’s stronger consensus rating and higher possible upside, analysts plainly believe biote is more favorable than Tempus AI.

Summary

biote beats Tempus AI on 10 of the 15 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 biote

biote Corp. operates in practice-building business within the hormone optimization space. It trains physicians and nurse practitioners in hormone optimization using bioidentical hormone replacement pellet therapy in men and women experiencing hormonal imbalance. The company offers Biote Method, a comprehensive end-to-end practice building platform that provides Biote-certified practitioners with the components developed for practitioners in the hormone optimization space comprising Biote Method education, training, and certification services; practice management software that allows Biote-certified practitioners to order, track, and manage hormone optimization product inventory and other administrative requirements; inventory management software to monitor pellet inventory; and information regarding available hormone replacement therapy products, as well as digital and point-of-care marketing support. It also sells dietary supplements under the Biote brand; and sterile pellet insertion kits that is used with hormone optimization therapies for male and female. The company was founded in 2012 and is headquartered in Irving, Texas.