Investors are weighing the potential of two medical technology companies: **Tempus AI** (NASDAQ:TEM) and **Inspire Medical Systems** (NYSE:INSP). An analysis of their profitability, risk, dividends, institutional ownership, earnings, valuation, and analyst recommendations reveals a clear comparison between the two firms.
Valuation and Earnings Performance
Both companies have distinct financial profiles. As of now, **Tempus AI** has a consensus target price of **$79.85**, reflecting an anticipated upside of **11.58%**. In contrast, **Inspire Medical Systems** boasts a significantly higher target price of **$133.88**, suggesting a robust upside potential of **63.97%**. This disparity indicates that analysts favor Inspire Medical Systems regarding growth expectations.
Examining their earnings further, analysts have rated **Inspire Medical Systems** more favorably due to its stronger consensus rating and larger potential appreciation.
Risk and Volatility Assessment
When considering risk, **Tempus AI** exhibits a **beta of 4.86**, meaning its stock is **386%** more volatile than the S&P 500. This level of volatility suggests a higher risk for investors. In contrast, **Inspire Medical Systems** has a beta of **1.14**, indicating it is **14%** more volatile than the S&P 500. This lower volatility may appeal to risk-averse investors seeking more stable returns.
Ownership Structure
Institutional ownership also plays a critical role in assessing these companies. **Tempus AI** has **24.2%** of its shares held by institutional investors, while a substantial **94.9%** of **Inspire Medical Systems** shares are owned by institutions. This strong institutional backing for Inspire Medical Systems may suggest greater confidence among large investors regarding its prospects.
In terms of insider ownership, **Tempus AI** has **26.3%** held by insiders, while **Inspire Medical Systems** has a relatively modest **4.1%** of its shares owned by insiders. The higher percentage of institutional ownership in Inspire Medical Systems indicates that larger investors believe it will outperform the market over the long term.
Profitability Metrics
Profitability is another area where the two companies diverge. A comparison of their net margins, return on equity, and return on assets shows **Inspire Medical Systems** outperforming **Tempus AI** on **11** of the **14** factors evaluated. This performance may contribute to its favorable analyst ratings and projected growth.
Company Profiles
**Tempus AI**, headquartered in **Chicago**, is a technology firm focused on enhancing precision medicine through artificial intelligence. It provides AI-driven solutions to improve personalized patient care while also advancing the development of optimal therapeutic approaches.
**Inspire Medical Systems**, based in **Golden Valley, Minnesota**, specializes in developing minimally invasive solutions for patients suffering from obstructive sleep apnea (OSA). Its flagship product, the **Inspire system**, utilizes neurostimulation technology to provide effective treatment for moderate to severe cases of OSA. The company is also working on a novel closed-loop solution designed to monitor patient breathing continuously.
In summary, based on the analysis, **Inspire Medical Systems** appears to be a more favorable investment compared to **Tempus AI**, given its higher target price, lower volatility, and stronger institutional backing. As always, potential investors should conduct thorough research and consider their risk tolerance before making investment decisions.
