Critical Analysis: Tempus AI (NASDAQ:TEM) versus Tremor International (NASDAQ:TRMR)

Tremor International (NASDAQ:TRMR) and Tempus AI (NASDAQ:TEM) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Insider and Institutional Ownership

7.9% of Tremor International shares are owned by institutional investors. 8.2% of Tremor International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Tremor International 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
Tremor International	$343.77 million	2.13	$22.74 million	($0.14)	-72.07
Tempus AI	$320.67 million	26.10	-$289.81 million	N/A	N/A

Tremor International has higher revenue and earnings than Tempus AI.

Profitability

This table compares Tremor International and Tempus AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tremor International	-5.72%	3.11%	1.89%
Tempus AI	N/A	N/A	-111.38%

Analyst Recommendations

This is a summary of current ratings for Tremor International and Tempus AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tremor International	0	0	1	0	3.00
Tempus AI	0	3	7	0	2.70

Tremor International presently has a consensus target price of $8.00, indicating a potential downside of 20.71%. Tempus AI has a consensus target price of $54.22, indicating a potential upside of 2.00%. Given Tempus AI’s higher possible upside, analysts plainly believe Tempus AI is more favorable than Tremor International.

Summary

Tremor International beats Tempus AI on 7 of the 11 factors compared between the two stocks.

About Tremor International

Tremor International Ltd provides end-to-end software platform that enables advertisers to reach relevant audiences and publishers. The company's demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. It serves ad buyers, advertisers, brands, agencies, and digital publishers in Israel, the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Taptica International Ltd. and changed its name to Tremor International Ltd in September 2015. Tremor International Ltd was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.

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.