In the evolving landscape of healthcare technology, two prominent companies, GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM), stand out for their innovative approaches. Both organizations operate within the Medical – Healthcare Information Services industry, focusing on improving patient outcomes through advanced technological solutions. As I analyze their market strategies, growth potential, and competitive advantages, I invite you to explore which of these companies may be the more compelling investment opportunity for your portfolio.
Table of contents
Company Overview
GE HealthCare Technologies Inc. Overview
GE HealthCare Technologies Inc. is a leading healthcare technology company focused on developing and marketing innovative products, services, and digital solutions for patient diagnosis, treatment, and monitoring. With a market capitalization of approximately $36.5B and headquartered in Chicago, Illinois, GE HealthCare operates across four key segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. This diversified approach allows the company to provide a comprehensive range of healthcare services, from molecular imaging to advanced patient monitoring systems. Incorporated in 2022, GEHC continues to expand its global footprint, serving markets in North America, Europe, the Middle East, and Asia.
Tempus AI, Inc. Overview
Tempus AI, Inc., founded in 2015 and based in Chicago, specializes in healthcare technology, providing cutting-edge diagnostic services and analytical tools for oncology and other medical fields. With a market cap of about $13.4B, Tempus offers a suite of solutions including next-generation sequencing diagnostics, molecular profiling, and clinical trial matching services. The company’s innovative platforms, such as Insights and Lens, facilitate data-driven decision-making for healthcare providers and pharmaceutical companies alike. Recently rebranded from Tempus Labs to Tempus AI in 2023, the company aims to leverage artificial intelligence to enhance patient outcomes and streamline healthcare processes.
Key similarities and differences
Both GE HealthCare and Tempus AI operate in the healthcare technology sector, focusing on improving patient care through advanced diagnostics and analytics. However, GEHC emphasizes a broader range of medical devices and solutions, while Tempus AI is more specialized in data analytics and molecular profiling, particularly in oncology. This distinction highlights their complementary roles within the healthcare ecosystem.
Income Statement Comparison
The table below presents a comparative view of the income statements for GE HealthCare Technologies Inc. and Tempus AI, Inc. for the most recent fiscal year, allowing us to analyze their financial performance.
| Metric | GE HealthCare (GEHC) | Tempus AI (TEM) |
|---|---|---|
| Market Cap | 36.54B | 13.40B |
| Revenue | 19.67B | 0.69B |
| EBITDA | 3.67B | -0.61B |
| EBIT | 3.09B | -0.65B |
| Net Income | 1.99B | -0.71B |
| EPS | 4.37 | -4.60 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, GE HealthCare demonstrated solid revenue growth, achieving 19.67B, reflecting stable performance with a net income of 1.99B and a positive EPS of 4.37. In contrast, Tempus AI faced significant challenges, reporting a revenue of only 0.69B and a net loss of 0.71B, with an EPS of -4.60. This stark contrast highlights GEHC’s stronger market position and operational efficiency, while TEM’s ongoing struggles suggest potential risks for investors, emphasizing the need for careful consideration of future prospects and financial stability.
Financial Ratios Comparison
The table below provides a comparative overview of the most recent financial ratios for GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM), highlighting key metrics that can assist in evaluating their respective financial health.
| Metric | GEHC | TEM |
|---|---|---|
| ROE | 23.59% | -12.53% |
| ROIC | 8.29% | -1.07% |
| P/E | 17.89 | N/A |
| P/B | 4.22 | N/A |
| Current Ratio | 0.996 | 2.29 |
| Quick Ratio | 0.793 | 2.16 |
| D/E | 1.11 | -8.31 |
| Debt-to-Assets | 28.34% | 50.54% |
| Interest Coverage | 5.20 | -12.88 |
| Asset Turnover | 0.59 | 0.75 |
| Fixed Asset Turnover | 7.71 | 9.52 |
| Payout ratio | 2.76% | N/A |
| Dividend yield | 0.15% | 0.09% |
Interpretation of Financial Ratios
GEHC demonstrates robust profitability with a strong ROE of 23.59% and a reasonable P/E ratio of 17.89, suggesting it is valued fairly relative to its earnings. Conversely, TEM shows significant financial distress, evident in its negative ROE and high debt ratios, indicating potential liquidity and solvency concerns. Investors should approach TEM with caution, assessing the sustainability of its business model amidst these challenges.
Dividend and Shareholder Returns
GE HealthCare Technologies Inc. (GEHC) pays a modest dividend with a yield of 0.15% and a dividend payout ratio of 2.7%, indicating a sustainable approach given its solid free cash flow coverage. In contrast, Tempus AI, Inc. (TEM) does not pay dividends, reflecting a focus on reinvestment for growth amid ongoing losses. Both companies engage in share buybacks, with GEHC showing a commitment to returning value to shareholders. Overall, GEHC’s strategy supports long-term value creation, while TEM’s approach may evolve as it establishes profitability.
Strategic Positioning
In the healthcare technology sector, GE HealthCare Technologies Inc. (GEHC) commands a market cap of $36.54B, reflecting a strong position with diverse product offerings in imaging and patient care solutions. Conversely, Tempus AI, Inc. (TEM), with a market cap of $13.40B, focuses on next-generation diagnostics and data analytics. Both companies face competitive pressure as technological disruptions occur; GEHC must innovate to maintain its edge, while TEM leverages AI to enhance clinical outcomes.
Stock Comparison
In this analysis, I will review the stock performance of GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM) over the past year, focusing on key price movements and trading dynamics.
Trend Analysis
GE HealthCare Technologies Inc. (GEHC) has experienced a price change of +4.4% over the past year. This indicates a bullish trend, supported by the stock’s acceleration status. The stock has seen notable volatility with a standard deviation of 7.26, and its price has fluctuated between a high of $93.87 and a low of $60.51. The recent trend from September 14, 2025, to November 30, 2025, shows a price increase of +4.64%, with a standard deviation of 2.45, reinforcing the bullish outlook.
Tempus AI, Inc. (TEM), on the other hand, has shown a more dramatic overall price change of +93.61% over the past year, indicating a bullish trend, albeit with deceleration in recent performance. The stock has a higher volatility level, reflected in a standard deviation of 16.45, with prices ranging from a low of $28.64 to a high of $96.39. However, in the recent trend from September 14, 2025, to November 30, 2025, TEM has experienced a decline of -9.78%, with a standard deviation of 8.9, signaling a potential shift in market sentiment.
In conclusion, while both stocks have strong overall bullish trends, the recent performance of TEM raises caution due to the negative variation. Risk management strategies should be considered when evaluating investment opportunities in these companies.
Analyst Opinions
Recent analyst recommendations reveal a clear divide between GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM). For GEHC, analysts have rated the stock as “A-” with solid overall scores, indicating a strong buy consensus based on robust return on equity and assets. In contrast, TEM has received a “D+” rating, suggesting a sell consensus due to consistently low performance metrics. Notable analysts include those from leading financial institutions, underscoring the cautious sentiment surrounding TEM while favoring GEHC for potential investment.
Stock Grades
In the current analysis, I have gathered the latest stock ratings for two companies: GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM). Here’s how they are graded by reputable analysts.
GE HealthCare Technologies Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| BTIG | Maintain | Buy | 2025-11-21 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-30 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-30 |
| Wells Fargo | Maintain | Overweight | 2025-10-30 |
| BTIG | Maintain | Buy | 2025-10-13 |
| Citigroup | Downgrade | Neutral | 2025-10-07 |
| Morgan Stanley | Maintain | Equal Weight | 2025-07-31 |
| Citigroup | Maintain | Buy | 2025-07-31 |
| Citigroup | Maintain | Buy | 2025-07-09 |
| Morgan Stanley | Maintain | Equal Weight | 2025-05-06 |
Tempus AI, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| BTIG | Maintain | Buy | 2025-11-25 |
| Piper Sandler | Maintain | Neutral | 2025-11-11 |
| Morgan Stanley | Maintain | Overweight | 2025-11-11 |
| HC Wainwright & Co. | Maintain | Buy | 2025-11-07 |
| Needham | Maintain | Buy | 2025-11-05 |
| Canaccord Genuity | Maintain | Buy | 2025-11-05 |
| BTIG | Maintain | Buy | 2025-11-05 |
| BTIG | Maintain | Buy | 2025-10-22 |
| Piper Sandler | Maintain | Neutral | 2025-10-22 |
| Guggenheim | Maintain | Buy | 2025-09-26 |
Overall, both GEHC and TEM show a trend of stable grades, with most analysts maintaining their existing ratings. Notably, GEHC has witnessed a downgrade from Citigroup, while TEM remains consistently rated as a “Buy” by several firms, indicating strong investor confidence in its performance.
Target Prices
Based on recent analyst evaluations, here are the consensus target prices for the selected companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| GE HealthCare Technologies Inc. (GEHC) | 90 | 74 | 84.8 |
| Tempus AI, Inc. (TEM) | 105 | 70 | 93.33 |
Overall, the target prices suggest a positive outlook for both GE HealthCare and Tempus AI, with consensus values above their current stock prices of 79.99 and 78.16, respectively. This indicates that analysts foresee potential upside in the near term.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM) based on the most recent data available.
| Criterion | GE HealthCare (GEHC) | Tempus AI (TEM) |
|---|---|---|
| Diversification | High, across multiple healthcare segments | Low, focused on genomics |
| Profitability | Positive net margin (10.13%) | Negative margins |
| Innovation | Strong emphasis on digital solutions | Advanced AI analytics |
| Global presence | Extensive, operates in multiple regions | Limited, primarily US-focused |
| Market Share | Significant in medical imaging | Emerging in genomics |
| Debt level | Moderate (Debt-to-Equity: 1.11) | Very high (Debt-to-Equity: 8.31) |
Key takeaways reveal that GE HealthCare exhibits strong profitability and a diversified business model, while Tempus AI faces challenges with profitability and high debt levels, despite its innovative capabilities in AI and genomics.
Risk Analysis
The table below outlines the key risks associated with GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM).
| Metric | GE HealthCare Technologies Inc. | Tempus AI, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | High |
| Operational Risk | Low | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Low | Moderate |
In summary, GEHC presents a relatively stable risk profile with moderate market and regulatory risks, while TEM faces high operational and market risks. The recent decline in TEM’s stock price emphasizes the importance of monitoring these risks closely.
Which one to choose?
In comparing GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM), GEHC appears to be the stronger option for investors. GEHC boasts a solid market cap of $35.6B, with a net profit margin of 10.13% and an analyst rating of A-. Its stock trend is bullish, showing a 4.4% price increase over the last 12 weeks, indicating consistent growth potential. On the other hand, TEM, with a market cap of $4.05B, struggles with negative profitability metrics, including a D+ rating and a net income loss of $705M in the last fiscal year.
For growth-focused investors, GEHC is the preferred choice due to its robust fundamentals and positive market trends. Conversely, those prioritizing potential turnaround opportunities may consider TEM, albeit with caution due to its significant financial struggles and competitive pressures.
Risk Alert: GEHC faces competition and market dependence, while TEM grapples with severe financial instability.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of GE HealthCare Technologies Inc. and Tempus AI, Inc. to enhance your investment decisions:
