iRhythm Technologies (NASDAQ:IRTC – Get Free Report) and Tempus AI (NASDAQ:TEM – Get Free Report) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for iRhythm Technologies and Tempus AI, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iRhythm Technologies | 1 | 1 | 12 | 2 | 2.94 |
| Tempus AI | 2 | 3 | 9 | 0 | 2.50 |
iRhythm Technologies currently has a consensus target price of $187.38, indicating a potential upside of 57.53%. Tempus AI has a consensus target price of $68.54, indicating a potential upside of 18.31%. Given iRhythm Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe iRhythm Technologies is more favorable than Tempus AI.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iRhythm Technologies | $747.14 million | 5.23 | -$44.55 million | ($0.86) | -138.31 |
| Tempus AI | $1.27 billion | 8.18 | -$245.03 million | ($1.72) | -33.68 |
iRhythm Technologies has higher earnings, but lower revenue than Tempus AI. iRhythm Technologies is trading at a lower price-to-earnings ratio than Tempus AI, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
iRhythm Technologies has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 3.62, indicating that its share price is 262% more volatile than the S&P 500.
Profitability
This table compares iRhythm Technologies and Tempus AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iRhythm Technologies | -3.53% | -10.26% | -1.39% |
| Tempus AI | -22.20% | -53.83% | -11.17% |
Insider & Institutional Ownership
24.2% of Tempus AI shares are owned by institutional investors. 1.0% of iRhythm Technologies shares are owned by insiders. Comparatively, 24.3% of Tempus AI shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
iRhythm Technologies beats Tempus AI on 9 of the 15 factors compared between the two stocks.
About iRhythm Technologies
iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
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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