Talkspace (NASDAQ:TALK – Get Free Report) and Tempus AI (NASDAQ:TEM – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Talkspace and Tempus AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talkspace | 0.49% | 1.03% | 0.88% |
| Tempus AI | -22.20% | -53.83% | -11.17% |
Earnings and Valuation
This table compares Talkspace and Tempus AI”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talkspace | $228.87 million | 3.81 | $7.79 million | $0.01 | 520.50 |
| Tempus AI | $1.27 billion | 6.76 | -$245.03 million | ($1.72) | -27.83 |
Talkspace has higher earnings, but lower revenue than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than Talkspace, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
57.4% of Talkspace shares are held by institutional investors. Comparatively, 24.2% of Tempus AI shares are held by institutional investors. 23.5% of Talkspace 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Talkspace has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 3.64, indicating that its share price is 264% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Talkspace and Tempus AI, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talkspace | 1 | 7 | 1 | 0 | 2.00 |
| Tempus AI | 2 | 4 | 9 | 0 | 2.47 |
Talkspace presently has a consensus target price of $5.56, suggesting a potential upside of 6.87%. Tempus AI has a consensus target price of $68.64, suggesting a potential upside of 43.43%. Given Tempus AI’s stronger consensus rating and higher possible upside, analysts clearly believe Tempus AI is more favorable than Talkspace.
About Talkspace
Talkspace, Inc. operates as a virtual behavioral healthcare company in the United States. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans and employee assistance programs. It provides text, audio, and video-based psychotherapy from licensed therapists. The company offers Talkspace Employee Assistance Program (EAP) and Talkspace Behavioral Health plan (BH) that provides online therapy to members through BH and EAP offerings; and Talkspace for Business for members to access its platform services on a benefit plan paid by the enterprise. It serves its platform through third-party platforms or marketplace, such as Apple App Store and Google Play App Store. Talkspace, Inc. was founded in 2012 and is headquartered in New York, New York.
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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