WallStSmart

HealthEquity Inc (HQY)vsTempus AI, Inc. Class A Common Stock (TEM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tempus AI, Inc. Class A Common Stock generates 2% more annual revenue ($1.36B vs $1.34B). HQY leads profitability with a 17.2% profit margin vs -22.2%. HQY earns a higher WallStSmart Score of 66/100 (B-).

HQY

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 7.5Value: 6.7Quality: 8.0
Piotroski: 7/9Altman Z: 1.86

TEM

Avoid

31

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HQYUndervalued (+57.6%)

Margin of Safety

+57.6%

Fair Value

$181.42

Current Price

$104.63

$76.79 discount

UndervaluedFair: $181.42Overvalued

Intrinsic value data unavailable for TEM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HQY2 strengths · Avg: 8.0/10
Operating MarginProfitability
29.3%8/10

Strong operational efficiency at 29.3%

EPS GrowthGrowth
34.4%8/10

Earnings expanding 34.4% YoY

TEM1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
36.1%10/10

Revenue surging 36.1% year-over-year

Areas to Watch

HQY2 concerns · Avg: 4.0/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.864/10

Grey zone — moderate risk

TEM4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
22.4x2/10

Trading at 22.4x book value

Return on EquityProfitability
-72.7%2/10

ROE of -72.7% — below average capital efficiency

Free Cash FlowQuality
$-81.48M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : HQY

The strongest argument for HQY centers on Operating Margin, EPS Growth. Profitability is solid with margins at 17.2% and operating margin at 29.3%. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bull Case : TEM

The strongest argument for TEM centers on Revenue Growth. Revenue growth of 36.1% demonstrates continued momentum.

Bear Case : HQY

The primary concerns for HQY are P/E Ratio, Altman Z-Score.

Bear Case : TEM

The primary concerns for TEM are EPS Growth, Price/Book, Return on Equity. Debt-to-equity of 3.17 is elevated, increasing financial risk.

Key Dynamics to Monitor

HQY profiles as a mature stock while TEM is a hypergrowth play — different risk/reward profiles.

TEM carries more volatility with a beta of 3.46 — expect wider price swings.

TEM is growing revenue faster at 36.1% — sustainability is the question.

HQY generates stronger free cash flow (97M), providing more financial flexibility.

Bottom Line

HQY scores higher overall (66/100 vs 31/100), backed by strong 17.2% margins. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

HealthEquity Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

HealthEquity, Inc. provides technology-enabled service platforms to consumers and employers in the United States. The company is headquartered in Draper, Utah.

Tempus AI, Inc. Class A Common Stock

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

Tempus AI, Inc is a healthcare technology company. The company is headquartered in Chicago, Illinois.

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