Tempus AI, Inc. (TEM) vs Waystar Holding Corp. (WAY)

Tempus AI, Inc. and Waystar Holding Corp. are both Health Information Services companies. Tempus AI, Inc. is the larger, with a market value of $14.9B against $4.7B — 3.2× the size. Tempus AI, Inc. has negative trailing earnings, so its P/E is not meaningful; Waystar Holding Corp. trades at 34.3×. Tempus AI, Inc. grew revenue faster over the last twelve months: 50.4% against 19.2%. Waystar Holding Corp. has the higher net margin (11.2% vs −17.8%) and the higher return on invested capital (3.30% vs −17.9%). Across the 17 metrics below, Waystar Holding Corp. leads on 14 and Tempus AI, Inc. on 3.

Valuation

Metric TEM WAY Health Information Services median
P/E n/m 34.31 39.52
P/S 10.68 3.93 2.65
P/B 34.38 1.19 2.32
Price to free cash flow n/m 19.24 16.77
EV/EBITDA n/m 13.75 12.35
EV/Sales 11.06 4.96 3.06
Earnings yield (1.68%) 2.91% (1.68%)
Free cash flow yield (1.78%) 5.20% 0.54%

Profitability

Metric TEM WAY Health Information Services median
Gross margin 63.98% 69.11% 63.38%
Operating margin (19.76%) 22.87% (8.35%)
Net margin (17.77%) 11.18% (14.70%)
Free cash flow margin (19.06%) 20.42% 0.58%
Return on equity (67.44%) 3.77% (6.82%)
Return on assets (12.75%) 2.56% (6.02%)
Return on invested capital (17.87%) 3.30% 0.00%

Growth

Metric TEM WAY Health Information Services median
Revenue growth (TTM) 50.43% 19.23% 8.62%
EPS growth (last fiscal year) 77.37% 569.23% —
Revenue growth, 5-year CAGR — — 12.36%
Net income growth, 5-year CAGR — — 0.00%

Health

Metric TEM WAY Health Information Services median
Debt to equity 3.06 0.37 0.01
Current ratio 3.30 1.85 2.37
Net debt to EBITDA (3.32) 3.49 0.50

Dividend

Metric TEM WAY Health Information Services median
Dividend yield — — 0.85%
Payout ratio — — 0.00

Size

Metric TEM WAY Health Information Services median
Market cap 14.88b 4.72b 352.86m

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