Acadia Healthcare (NASDAQ:ACHC – Get Free Report) and Tempus AI (NASDAQ:TEM – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.
Earnings and Valuation
This table compares Acadia Healthcare 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 | |
| Acadia Healthcare | $3.31 billion | 1.08 | -$1.10 billion | ($12.47) | -3.10 |
| Tempus AI | $1.51 billion | 10.09 | -$245.03 million | ($1.06) | -79.66 |
Tempus AI has lower revenue, but higher earnings than Acadia Healthcare. Tempus AI is trading at a lower price-to-earnings ratio than Acadia Healthcare, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for Acadia Healthcare and Tempus AI, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acadia Healthcare | 2 | 5 | 8 | 0 | 2.40 |
| Tempus AI | 1 | 10 | 11 | 0 | 2.45 |
Acadia Healthcare presently has a consensus target price of $32.54, suggesting a potential downside of 15.73%. Tempus AI has a consensus target price of $79.37, suggesting a potential downside of 6.01%. Given Tempus AI’s stronger consensus rating and higher probable upside, analysts plainly believe Tempus AI is more favorable than Acadia Healthcare.
Institutional and Insider Ownership
24.2% of Tempus AI shares are owned by institutional investors. 1.2% of Acadia Healthcare 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, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Acadia Healthcare and Tempus AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acadia Healthcare | -33.07% | 6.53% | 2.33% |
| Tempus AI | -12.54% | -47.00% | -9.44% |
Volatility and Risk
Acadia Healthcare has a beta of 0.64, suggesting that its share price is 36% less 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.
Summary
Tempus AI beats Acadia Healthcare on 10 of the 14 factors compared between the two stocks.
About Acadia Healthcare
Acadia Healthcare Company, Inc. provides behavioral healthcare services in the United States and Puerto Rico. The company develops and operates acute inpatient psychiatric facilities, specialty treatment facilities comprising residential recovery facilities and eating disorder facilities, comprehensive treatment centers, and residential treatment centers, as well as facilities offering outpatient behavioral healthcare services for the behavioral healthcare and recovery needs of communities. Acadia Healthcare Company, Inc. was founded in 2005 and is headquartered in Franklin, Tennessee.
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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