Critical Analysis: Grom Social Enterprises (NASDAQ:GROM) and Tempus AI (NASDAQ:TEM)

Tempus AI (NASDAQ:TEM) and Grom Social Enterprises (NASDAQ:GROM) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Tempus AI and Grom Social Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	0	3	9	0	2.75
Grom Social Enterprises	0	0	0	0	0.00

Tempus AI currently has a consensus target price of $56.00, suggesting a potential upside of 49.25%. Given Tempus AI’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Tempus AI is more favorable than Grom Social Enterprises.

Profitability

This table compares Tempus AI and Grom Social Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tempus AI	N/A	N/A	-111.38%
Grom Social Enterprises	-386.01%	-89.97%	-70.42%

Institutional & Insider Ownership

24.2% of Tempus AI shares are held by institutional investors. Comparatively, 15.9% of Grom Social Enterprises shares are held by institutional investors. 0.0% of Grom Social Enterprises shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Tempus AI and Grom Social Enterprises”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	$640.44 million	9.22	-$289.81 million	N/A	N/A
Grom Social Enterprises	$3.72 million	0.00	-$12.53 million	($11.67)	0.00

Grom Social Enterprises has lower revenue, but higher earnings than Tempus AI.

Summary

Tempus AI beats Grom Social Enterprises on 8 of the 11 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 Grom Social Enterprises

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company in the United States and Philippines. It operates through three segments: Animation, Original Content, and Social and Technology. The company operates a social media network for children under the age of 13 years. It also produces animated films and televisions series; and provides web filtering services to schools and government agencies, as well as acquires, develops, and builds commercial potential of kids and family entertainment properties and associated business opportunities. Grom Social Enterprises, Inc. was founded in 2012 and is headquartered in Boca Raton, Florida.