WallStSmart

R1 RCM Inc (RCM)vsTempus AI, Inc. Class A Common Stock (TEM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

R1 RCM Inc generates 94% more annual revenue ($2.46B vs $1.27B). RCM leads profitability with a -2.5% profit margin vs -19.3%. RCM earns a higher WallStSmart Score of 39/100 (F).

RCM

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 3.0Value: 6.7Quality: 5.0

TEM

Avoid

31

out of 100

Grade: F

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

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RCM1 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

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

Revenue surging 83.0% year-over-year

Areas to Watch

RCM4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

Return on EquityProfitability
-2.2%2/10

ROE of -2.2% — below average capital efficiency

EPS GrowthGrowth
-99.3%2/10

Earnings declined 99.3%

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 : RCM

The strongest argument for RCM centers on Price/Book. Revenue growth of 14.7% demonstrates continued momentum.

Bull Case : TEM

The strongest argument for TEM centers on Revenue Growth. Revenue growth of 83.0% demonstrates continued momentum.

Bear Case : RCM

The primary concerns for RCM are PEG Ratio, Operating Margin, Return on Equity.

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

RCM profiles as a turnaround stock while TEM is a hypergrowth play — different risk/reward profiles.

TEM is growing revenue faster at 83.0% — sustainability is the question.

RCM generates stronger free cash flow (60M), providing more financial flexibility.

Monitor HEALTH INFORMATION SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RCM scores higher overall (39/100 vs 31/100) and 14.7% revenue growth. Both earn "Hold" 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.

R1 RCM Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

R1 RCM Inc (RCM) is a leading provider of technology-enabled revenue cycle management services, specializing in optimizing the financial performance of healthcare organizations. By leveraging advanced analytics and industry expertise, R1 RCM delivers comprehensive solutions that streamline patient billing processes and enhance operational efficiencies across a diverse portfolio of clients, including hospitals and outpatient facilities. The company's innovative approach not only improves revenue capture but also elevates the patient experience, positioning R1 RCM as a key player in the evolving healthcare landscape. With a robust growth strategy focused on expanding its service offerings and market reach, R1 RCM is poised to capitalize on the increasing demand for effective revenue cycle solutions in the healthcare sector.

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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