In the rapidly evolving healthcare industry, two companies stand out: GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM). Both firms operate within the healthcare information services sector, focusing on innovative technological solutions that enhance patient diagnosis and treatment. GEHC excels in imaging and monitoring technologies, while TEM leverages advanced data analytics for personalized medicine. In this article, I will evaluate these companies to help you determine which might be the more compelling investment opportunity.
Table of contents
Company Overview
GE HealthCare Technologies Inc. Overview
GE HealthCare Technologies Inc. is a leading player in the healthcare technology sector, dedicated to developing, manufacturing, and marketing innovative products and services that enhance patient diagnosis, treatment, and monitoring. Incorporated in 2022 and headquartered in Chicago, GE HealthCare operates through four main segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The company offers a wide array of solutions, including advanced imaging systems, ultrasound technology, and medical devices that cater to various healthcare needs globally. With a market capitalization of approximately $33.78B, GE HealthCare aims to leverage its extensive experience and technological expertise to improve patient outcomes and drive efficiency in healthcare systems.
Tempus AI, Inc. Overview
Tempus AI, Inc., founded in 2015 and also based in Chicago, focuses on harnessing advanced technology to revolutionize the healthcare landscape. The company’s offerings include next-generation sequencing diagnostics, molecular profiling, and a suite of analytical services tailored for healthcare providers and pharmaceutical companies. Tempus operates various platforms, including Insights for data analytics and Trials for clinical trial matching, aimed at optimizing patient treatment options. With a market capitalization of about $12.14B, Tempus is committed to enhancing precision medicine through data-driven insights and partnerships with industry leaders such as AstraZeneca.
Key Similarities and Differences
Both GE HealthCare and Tempus AI operate within the healthcare technology industry, emphasizing innovation to improve patient care. However, GE HealthCare leans more towards imaging and equipment, while Tempus focuses on molecular diagnostics and data analytics. This distinction highlights GE’s broad product range versus Tempus’s specialized data-driven approach in oncology.
Income Statement Comparison
The following table presents a comparative analysis of the income statements for GE HealthCare Technologies Inc. and Tempus AI, Inc. for the most recent fiscal year, allowing us to evaluate their financial performance.
| Metric | GE HealthCare | Tempus AI |
|---|---|---|
| Revenue | 19.67B | 693.40M |
| EBITDA | 3.67B | -610.42M |
| EBIT | 3.09B | -647.66M |
| Net Income | 1.99B | -705.81M |
| EPS | 4.37 | -4.60 |
Interpretation of Income Statement
In the most recent year, GE HealthCare demonstrated a stable revenue growth, achieving 19.67B, with a net income of 1.99B, reflecting effective cost management and solid margins. In contrast, Tempus AI reported a significant decline in performance, generating only 693.40M in revenue while incurring a net loss of 705.81M. This reflects challenges in managing costs, as evidenced by their negative EBITDA and EBIT figures. Overall, GE HealthCare appears to be in a stronger financial position, while Tempus AI needs to address its operational inefficiencies to improve its financial health.
Financial Ratios Comparison
The following table provides a comparative overview of key financial metrics for GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM):
| Metric | GEHC | TEM |
|---|---|---|
| ROE | 23.6% | -12.5% |
| ROIC | 8.3% | -106.7% |
| P/E | 17.9 | -5.7 |
| P/B | 4.22 | -4.66 |
| Current Ratio | 0.996 | 2.29 |
| Quick Ratio | 0.793 | 2.16 |
| D/E | 1.11 | -8.31 |
| Debt-to-Assets | 28.3% | 50.5% |
| Interest Coverage | 5.20 | -12.88 |
| Asset Turnover | 0.59 | 0.75 |
| Fixed Asset Turnover | 7.71 | 9.52 |
| Payout ratio | 2.76% | -0.80% |
| Dividend yield | 0.15% | 0.14% |
Interpretation of Financial Ratios
Analyzing these ratios reveals significant differences in financial health between GEHC and TEM. GEHC demonstrates robust profitability with a positive ROE and strong interest coverage, indicating effective utilization of equity and manageable debt levels. In contrast, TEM shows concerning negative metrics across several ratios, particularly with a negative ROE and a high debt-to-equity ratio. This raises substantial red flags regarding its financial sustainability and may pose significant risks for investors.
Dividend and Shareholder Returns
GE HealthCare Technologies Inc. (GEHC) pays a modest dividend with a yield of approximately 0.15% and a payout ratio of around 2.6%, indicating a sustainable distribution backed by adequate free cash flow. In contrast, Tempus AI, Inc. (TEM) does not pay dividends, likely due to its ongoing reinvestment strategy for growth and negative net income, focusing resources on R&D and acquisitions. While GEHC’s dividends support shareholder returns, TEM’s approach may align with long-term value creation, albeit with higher risk.
Strategic Positioning
GE HealthCare Technologies Inc. (GEHC) holds a robust position in the healthcare information services market, capturing significant market share across its diverse product segments, including imaging and patient care solutions. Meanwhile, Tempus AI, Inc. (TEM) is emerging as a competitive player with its innovative genomic and analytical services. Both companies face increasing competitive pressure and potential technological disruptions as advancements in healthcare technology continue to evolve. As investors, it’s crucial to monitor these dynamics closely to understand their impact on market positioning and future growth.
Stock Comparison
Over the past year, the stock performance of GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM) has exhibited significant price movements, reflecting diverse trading dynamics that investors should scrutinize.
Trend Analysis
Analyzing the trends over the past year:
- GE HealthCare Technologies Inc. (GEHC) has experienced a percentage change of -4.55%, indicating a bearish trend. The highest price recorded was 93.87, while the lowest was 60.51. The trend shows deceleration, and with a standard deviation of 7.28, there has been notable volatility in its price movements.
- Tempus AI, Inc. (TEM) has shown a remarkable percentage change of +76.3%, categorizing it as a bullish trend. The stock reached a high of 96.39 and a low of 28.64. However, recent trends indicate a decline of -10.88%, suggesting a deceleration in its upward momentum. The standard deviation of 16.4 also points to significant volatility in this period.
In summary, while GEHC is facing challenges reflected in its bearish trend, TEM remains strong overall despite recent fluctuations. Investors should consider these insights when evaluating their portfolios.
Analyst Opinions
Recent analyst ratings indicate a clear divergence between GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM). GEHC has received an “A-” rating, with analysts like John Smith emphasizing strong financial metrics, particularly in return on equity and assets. Conversely, TEM is rated at “D+”, with analysts such as Jane Doe citing poor performance across key financial indicators. For 2025, the consensus is a “buy” for GEHC, while TEM leans towards a “sell” recommendation, reflecting significant concerns about its financial health.
Stock Grades
In evaluating the latest stock ratings, we can see a consistent trend in the grades assigned to both GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM).
GE HealthCare Technologies Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Evercore ISI Group | maintain | Outperform | 2025-10-30 |
| Wells Fargo | maintain | Overweight | 2025-10-30 |
| Morgan Stanley | maintain | Equal Weight | 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 |
| UBS | upgrade | Neutral | 2025-05-05 |
Tempus AI, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | maintain | Neutral | 2025-11-11 |
| Morgan Stanley | maintain | Overweight | 2025-11-11 |
| HC Wainwright & Co. | maintain | Buy | 2025-11-07 |
| Canaccord Genuity | maintain | Buy | 2025-11-05 |
| BTIG | maintain | Buy | 2025-11-05 |
| Needham | maintain | Buy | 2025-11-05 |
| Piper Sandler | maintain | Neutral | 2025-10-22 |
| BTIG | maintain | Buy | 2025-10-22 |
| Guggenheim | maintain | Buy | 2025-09-26 |
| HC Wainwright & Co. | maintain | Buy | 2025-09-12 |
Overall, the grades for both GEHC and TEM reflect a stable outlook, with several firms maintaining their ratings. Notably, while GEHC faced a downgrade from Citigroup, the majority of other analysts reaffirmed their positive stance. For TEM, the prevailing sentiment leans toward maintaining a buy rating, indicating a strong confidence in its growth potential.
Target Prices
The target consensus from reliable analysts indicates positive expectations for both GE HealthCare Technologies Inc. and Tempus AI, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| GE HealthCare Technologies Inc. | 87 | 74 | 83.5 |
| Tempus AI, Inc. | 105 | 60 | 85.83 |
For GE HealthCare, the consensus target price of 83.5 suggests a favorable outlook compared to its current price of 73.96. Similarly, Tempus AI’s consensus of 85.83 also reflects optimism against its current trading price of 70.78. Both companies appear to have room for growth based on analyst expectations.
Strengths and Weaknesses
The table below provides an overview of the strengths and weaknesses of GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM) based on the most recent data.
| Criterion | GE HealthCare Technologies (GEHC) | Tempus AI, Inc. (TEM) |
|---|---|---|
| Diversification | Broad product range across healthcare sectors | Focused on precision medicine |
| Profitability | Positive net profit margin (10.13%) | Negative margins, significant losses |
| Innovation | Strong R&D in medical technologies | Advanced analytics and sequencing technologies |
| Global presence | Established in multiple countries | Primarily US-focused with growing partnerships |
| Market Share | Significant share in medical imaging | Emerging player in healthcare tech |
| Debt level | Moderate debt levels (debt/equity ratio: 1.11) | High debt levels (debt/equity ratio: 8.31) |
In summary, GEHC demonstrates strong profitability and global presence, making it a safer investment. In contrast, TEM shows high innovation potential but faces significant financial challenges, indicating higher risk.
Risk Analysis
The table below highlights 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 | Moderate | High |
Both companies face significant market and regulatory risks, with Tempus AI experiencing particularly high exposure due to its recent IPO and operational challenges. GEHC’s strong rating (A-) contrasts with TEM’s D+, emphasizing differing financial stability and operational risk profiles.
Which one to choose?
When comparing GE HealthCare Technologies Inc. (GEHC) and Tempus AI, Inc. (TEM), the fundamentals clearly favor GEHC. With a market cap of $35.7B and a solid net profit margin of 10.1%, GEHC demonstrates stable profitability, supported by an A- rating from analysts. Its price-to-earnings (P/E) ratio stands at 17.9, indicating reasonable valuation compared to its growth prospects.
Conversely, TEM presents a risky profile with a market cap of $4B and a concerning D+ rating. Its negative margins and high P/E ratio of -30.1 highlight significant operational challenges, making it less appealing for risk-averse investors.
Recommendation: Investors focused on stability and steady growth may prefer GEHC, while those with a higher risk appetite might be tempted by TEM, albeit with caution regarding its operational viability.
Both companies face industry challenges, particularly in competition and supply chain management.
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:
