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 81% more annual revenue ($2.46B vs $1.36B). RCM leads profitability with a -2.5% profit margin vs -22.2%. RCM earns a higher WallStSmart Score of 39/100 (F).

RCM

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 3.0Value: 5.7Quality: 6.0
Piotroski: 6/9Altman Z: 1.34

TEM

Avoid

31

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RCMUndervalued (+27.7%)

Margin of Safety

+27.7%

Fair Value

$19.79

Current Price

$14.31

$5.48 discount

UndervaluedFair: $19.79Overvalued

Intrinsic value data unavailable for TEM.

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
36.1%10/10

Revenue surging 36.1% 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: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
20.0x2/10

Trading at 20.0x book value

Return on EquityProfitability
-72.7%2/10

ROE of -72.7% — below average capital efficiency

Free Cash FlowQuality
$-81.48M2/10

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 36.1% 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 EPS Growth, Price/Book, Return on Equity. Debt-to-equity of 3.17 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 36.1% — 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 premier provider of technology-driven revenue cycle management solutions, dedicated to significantly improving the financial performance of healthcare organizations throughout the United States. By harnessing advanced analytics and extensive industry expertise, the company delivers comprehensive services that streamline billing processes and enhance operational efficiency for both hospitals and outpatient facilities. R1 RCM's innovative solutions not only maximize revenue capture but also enhance patient experiences, positioning the company as a vital player in the dynamic healthcare landscape. With a focus on expanding service offerings and increasing market share, R1 RCM is well-equipped to meet the growing demand for sophisticated revenue cycle management services, ensuring robust growth and competitive advantage in the marketplace.

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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