Financial Contrast: Sabre (NASDAQ:SABR) versus Tempus AI (NASDAQ:TEM)

Sabre (NASDAQ:SABR) and Tempus AI (NASDAQ:TEM) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Profitability

This table compares Sabre and Tempus AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sabre	-10.01%	N/A	-2.98%
Tempus AI	N/A	N/A	-111.38%

Valuation & Earnings

This table compares Sabre and Tempus AI”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabre	$2.91 billion	0.47	-$527.61 million	($0.79)	-4.49
Tempus AI	$320.67 million	43.92	-$289.81 million	N/A	N/A

Tempus AI has lower revenue, but higher earnings than Sabre.

Analyst Recommendations

This is a summary of current recommendations for Sabre and Tempus AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabre	1	3	0	0	1.75
Tempus AI	0	4	8	0	2.67

Sabre presently has a consensus price target of $3.25, indicating a potential downside of 8.45%. Tempus AI has a consensus price target of $58.55, indicating a potential downside of 34.54%. Given Sabre’s higher possible upside, equities research analysts clearly believe Sabre is more favorable than Tempus AI.

Insider & Institutional Ownership

89.4% of Sabre shares are held by institutional investors. Comparatively, 24.2% of Tempus AI shares are held by institutional investors. 1.3% of Sabre shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

About Sabre

Sabre Corporation, together with its subsidiaries, operates as software and technology company for travel industry in the United States, Europe, Asia-Pacific, and internationally. It operates through two segments: Travel Solutions and Hospitality Solutions. The Travel Solutions segment operates a business-to-business travel marketplace that offers travel content, such as inventory, prices, and availability from a range of travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines, and tour operators with a network of travel buyers comprising online and offline travel agencies, travel management companies, and corporate travel departments. This segment provides a portfolio of software technology products and solutions through software-as-a-service (SaaS) and hosted delivery models to airlines and other travel suppliers. Its products include reservation systems for carriers, commercial and operations products, agency solutions, and data-driven intelligence solutions. Its Hospitality Solutions segment provides software and solutions to hoteliers through SaaS and hosted delivery models. Sabre Corporation was incorporated in 2006 and is headquartered in Southlake, Texas.

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.