Critical Comparison: Tempus AI (NASDAQ:TEM) and ZW Data Action Technologies (NASDAQ:CNET)

ZW Data Action Technologies (NASDAQ:CNET) and Tempus AI (NASDAQ:TEM) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Profitability

This table compares ZW Data Action Technologies and Tempus AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZW Data Action Technologies	-26.48%	-89.60%	-42.06%
Tempus AI	N/A	N/A	-111.38%

Institutional and Insider Ownership

0.0% of ZW Data Action Technologies shares are owned by institutional investors. 14.2% of ZW Data Action Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for ZW Data Action Technologies and Tempus AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZW Data Action Technologies	0	0	0	0	0.00
Tempus AI	0	3	7	0	2.70

Tempus AI has a consensus price target of $54.22, suggesting a potential downside of 13.37%. Given Tempus AI’s stronger consensus rating and higher probable upside, analysts clearly believe Tempus AI is more favorable than ZW Data Action Technologies.

Valuation & Earnings

This table compares ZW Data Action Technologies and Tempus AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZW Data Action Technologies	$30.58 million	0.10	-$5.97 million	($2.70)	-0.59
Tempus AI	$320.67 million	30.73	-$289.81 million	N/A	N/A

ZW Data Action Technologies has higher earnings, but lower revenue than Tempus AI.

Summary

Tempus AI beats ZW Data Action Technologies on 7 of the 11 factors compared between the two stocks.

About ZW Data Action Technologies

ZW Data Action Technologies Inc., through its subsidiaries, offers omni-channel advertising, precision marketing, and data analysis management systems in the People’s Republic of China. The company offers Internet advertising, precision marketing, and related data services to small and medium enterprises through its Internet portals, including 28.com and liansuo.com that provide advertisers with tools to build sales channels in the form of franchisees, sales agents, distributors, and/or resellers. It also develops and operates blockchain technology-based products and services, as well as blockchain-based SaaS services that provides one-stop blockchain-powered enterprise management solutions in forms of NFT generations, data record, share, and storage module subscriptions, etc. In addition, the company offers other e-commerce O2O advertising, and marketing and related value-added technical services. Additionally, it offers online-content production, distribution, promotion, and live streamer training and management services. The company was formerly known as ChinaNet Online Holdings, Inc. and changed its name to ZW Data Action Technologies Inc. in October 2020. Data Action Technologies Inc. was founded in 2003 and is based in Beijing, the People’s Republic of China.

About Tempus AI

Tempus AI Inc. is a technology company advancing precision medicine through the practical application of artificial intelligence principally in healthcare. The company provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. Tempus AI Inc. is based in CHICAGO.