Analyzing Tempus AI (NASDAQ:TEM) & DigitalOcean (NASDAQ:DOCN)

Tempus AI (NASDAQ:TEM) and DigitalOcean (NASDAQ:DOCN) are both mid-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Valuation & Earnings

This table compares Tempus AI and DigitalOcean”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	N/A	N/A	N/A	N/A	N/A
DigitalOcean	$692.88 million	5.36	$19.41 million	$0.53	76.10

DigitalOcean has higher revenue and earnings than Tempus AI.

Analyst Recommendations

This is a breakdown of recent ratings for Tempus AI and DigitalOcean, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	0	1	9	0	2.90
DigitalOcean	0	5	5	0	2.50

Tempus AI currently has a consensus target price of $45.56, indicating a potential downside of 7.74%. DigitalOcean has a consensus target price of $37.67, indicating a potential downside of 6.60%. Given DigitalOcean’s higher possible upside, analysts plainly believe DigitalOcean is more favorable than Tempus AI.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tempus AI	N/A	N/A	N/A
DigitalOcean	9.30%	-31.71%	6.51%

Institutional & Insider Ownership

49.8% of DigitalOcean shares are held by institutional investors. 0.7% of DigitalOcean shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

DigitalOcean beats Tempus AI on 6 of the 9 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 DigitalOcean

DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company's platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC). The company also provides platform-as-a-service (PaaS) solutions, such as managed databases; managed Kubernetes and container registry; application platform to build, deploy, and scale applications; Functions, a serverless compute solution; and Uptime for real-time uptime and latency alerts, as well as software-as-a-service (SaaS), including managed hosting and DigitalOcean Marketplace, a platform where developers can find pre-configured applications and solutions. In addition, it offers artificial intelligence (AI)/machine learning (ML) applications comprising GPU virtual machines for scaling AI applications; Notebooks, a simple cloud workspace that runs on GPUs that provides a managed interactive development environment for exploring data, and training and building machine learning models; and Deployments for deploying their machine learning model as an API endpoint. The company's customers include software engineers, researchers, data scientists, system administrators, students, and hobbyists. Its customers use its platform in various industry verticals and for a range of use cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, managed services, and AI/ML applications. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in New York, New York.