WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HealthEquity Inc generates 1% more annual revenue ($1.29B vs $1.27B). HQY leads profitability with a 14.9% profit margin vs -19.3%. HQY earns a higher WallStSmart Score of 64/100 (C+).

HQY

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 9.3Quality: 6.5
Piotroski: 4/9

TEM

Avoid

31

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.0Quality: 5.5
Piotroski: 6/9Altman Z: -2.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HQYUndervalued (+24.6%)

Margin of Safety

+24.6%

Fair Value

$102.02

Current Price

$81.02

$21.00 discount

UndervaluedFair: $102.02Overvalued

Intrinsic value data unavailable for TEM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HQY3 strengths · Avg: 8.7/10
EPS GrowthGrowth
883.0%10/10

Earnings expanding 883.0% YoY

PEG RatioValuation
0.708/10

Growing faster than its price suggests

Operating MarginProfitability
24.8%8/10

Strong operational efficiency at 24.8%

TEM1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
83.0%10/10

Revenue surging 83.0% year-over-year

Areas to Watch

HQY1 concerns · Avg: 4.0/10
P/E RatioValuation
36.1x4/10

Premium valuation, high expectations priced in

TEM4 concerns · Avg: 3.0/10
Price/BookValuation
17.0x4/10

Trading at 17.0x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-89.5%2/10

ROE of -89.5% — below average capital efficiency

Free Cash FlowQuality
$-51.78M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : HQY

The strongest argument for HQY centers on EPS Growth, PEG Ratio, Operating Margin. PEG of 0.70 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 value 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 (64/100 vs 31/100). Both earn "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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