HealthEquity Inc (HQY)vsTempus AI, Inc. Class A Common Stock (TEM)
HQY
HealthEquity Inc
$83.25
+0.75%
HEALTHCARE · Cap: $6.96B
TEM
Tempus AI, Inc. Class A Common Stock
$53.50
-1.05%
HEALTHCARE · Cap: $9.87B
Smart Verdict
WallStSmart Research — data-driven comparison
HealthEquity Inc generates 3% more annual revenue ($1.31B vs $1.27B). HQY leads profitability with a 16.4% profit margin vs -19.3%. HQY earns a higher WallStSmart Score of 66/100 (B-).
HQY
Strong Buy66
out of 100
Grade: B-
TEM
Avoid31
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.4%
Fair Value
$168.62
Current Price
$83.25
$85.37 discount
Margin of Safety
-71.3%
Fair Value
$31.29
Current Price
$53.50
$22.21 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 92.4% YoY
Strong operational efficiency at 21.6%
Revenue surging 83.0% year-over-year
Areas to Watch
Premium valuation, high expectations priced in
Trading at 19.4x book value
0.0% earnings growth
ROE of -89.5% — below average capital efficiency
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : HQY
The strongest argument for HQY centers on EPS Growth, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 21.6%. PEG of 1.19 suggests the stock is reasonably priced for its growth.
Bull Case : TEM
The strongest argument for TEM centers on Revenue Growth. Revenue growth of 83.0% demonstrates continued momentum.
Bear Case : HQY
The primary concerns for HQY are P/E Ratio.
Bear Case : TEM
The primary concerns for TEM are Price/Book, EPS Growth, Return on Equity. Debt-to-equity of 2.63 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 is growing revenue faster at 83.0% — sustainability is the question.
HQY generates stronger free cash flow (102M), providing more financial flexibility.
Monitor HEALTH INFORMATION SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HQY scores higher overall (66/100 vs 31/100), backed by strong 16.4% 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.
Visit Website →Compare with Other HEALTH INFORMATION SERVICES Stocks
Want to dig deeper into these stocks?