Exagen (NASDAQ:XGN – Get Free Report) and Tempus AI (NASDAQ:TEM – Get Free Report) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Profitability
This table compares Exagen and Tempus AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Exagen | -26.61% | -104.46% | -28.93% |
| Tempus AI | -12.54% | -48.29% | -9.64% |
Institutional and Insider Ownership
75.2% of Exagen shares are owned by institutional investors. Comparatively, 24.2% of Tempus AI shares are owned by institutional investors. 10.4% of Exagen 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Exagen and Tempus AI”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Exagen | $66.57 million | 3.02 | -$19.95 million | ($0.81) | -10.25 |
| Tempus AI | $1.27 billion | 10.42 | -$245.03 million | ($1.44) | -51.00 |
Exagen has higher earnings, but lower revenue than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than Exagen, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Exagen and Tempus AI, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Exagen | 1 | 0 | 7 | 1 | 2.89 |
| Tempus AI | 1 | 10 | 11 | 0 | 2.45 |
Exagen currently has a consensus price target of $10.12, indicating a potential upside of 21.91%. Tempus AI has a consensus price target of $79.37, indicating a potential upside of 8.08%. Given Exagen’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Exagen is more favorable than Tempus AI.
Risk & Volatility
Exagen has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 3.61, suggesting that its stock price is 261% more volatile than the S&P 500.
Summary
Tempus AI beats Exagen on 8 of the 15 factors compared between the two stocks.
About Exagen
Exagen Inc. develops and commercializes various testing products under the AVISE brand in the United States. The company enables healthcare providers to care for patients through the diagnosis, prognosis, and monitoring of autoimmune and autoimmune-related diseases, including systemic lupus erythematosus (SLE) and rheumatoid arthritis (RA). Its lead testing product is AVISE CTD that enables differential diagnosis for patients presenting with symptoms indicative of various connective tissue diseases (CTDs) and other related diseases with overlapping symptoms. The company offers AVISE Lupus that measures activation of the complement system by quantifying the level of B-cell C4d and erythrocyte bound C4d in the patient's blood; and AVISE APS, which consists of a panel of autoantibody tests that aids in the diagnosis and management of APS. In addition, it provides AVISE Vasculitis AAV, which utilizes a testing panel of individual analytes to provide physicians with results in the assessment and monitoring of anti-neutrophil cytoplasmic antibody associated vasculitis; AVISE SLE Prognostic, a panel of autoantibodies for assessing the potential for complications affecting the kidney, brain, and cardiovascular system; and AVISE Anti-CarP test, which identifies RA patients with severe disease. Further, the company offers AVISE SLE Monitor, a biomarker blood test; AVISE MTX, a patented and validated blood test; and AVISE HCQ, a blood test to monitor levels of hydroxychloroquine. It has a research collaboration and license agreement with Allegheny Health Network (AHN) Research Institute to develop novel patented biomarkers. The company was formerly known as Exagen Diagnostics, Inc. and changed its name to Exagen Inc. in January 2019. Exagen Inc. was incorporated in 2002 and is headquartered in Vista, 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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