Tempus AI (NASDAQ:TEM – Get Free Report) and Zepp Health (NYSE:ZEPP – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility and Risk
Tempus AI has a beta of 3.99, suggesting that its share price is 299% more volatile than the S&P 500. Comparatively, Zepp Health has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500.
Profitability
This table compares Tempus AI and Zepp Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tempus AI | -22.20% | -53.83% | -11.17% |
| Zepp Health | -15.48% | -15.00% | -6.07% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tempus AI | 2 | 3 | 9 | 0 | 2.50 |
| Zepp Health | 1 | 0 | 1 | 0 | 2.00 |
Tempus AI currently has a consensus price target of $68.64, indicating a potential upside of 47.11%. Zepp Health has a consensus price target of $56.28, indicating a potential upside of 535.21%. Given Zepp Health’s higher probable upside, analysts clearly believe Zepp Health is more favorable than Tempus AI.
Insider and Institutional Ownership
24.2% of Tempus AI shares are owned by institutional investors. Comparatively, 52.6% of Zepp Health shares are owned by institutional investors. 24.3% of Tempus AI shares are owned by company insiders. Comparatively, 36.0% of Zepp Health shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Tempus AI and Zepp Health”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tempus AI | $1.27 billion | 6.59 | -$245.03 million | ($1.72) | -27.13 |
| Zepp Health | $258.90 million | 0.50 | -$40.07 million | ($2.51) | -3.53 |
Zepp Health has lower revenue, but higher earnings than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than Zepp Health, indicating that it is currently the more affordable of the two stocks.
Summary
Zepp Health beats Tempus AI on 8 of the 14 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 Zepp Health
Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.
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