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TEM vs. HIMS: Which Medical Info Systems Stock Offers Greater Upside
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Key Takeaways
TEM stands to benefit as demand for digital healthcare and medical information systems accelerates globally.
TEM's diagnostics growth and data momentum, with oncology ties, strengthen precision medicine.
Hims & Hers is scaling through subscriber growth, GLP-1 programs and new specialties despite margin pressure.
From optimizing healthcare resource utilization to streamlining medical records and patient data management, the Medical Information Systems industry continues to broaden its scope at a rapid pace. Per the Precedence Research analysis, the global healthcare information systems market was valued at $519.23 billion in 2024 and is projected to surge to nearly $1,773.33 billion by 2034, registering a CAGR of 13.07% between 2025 and 2034.
Rising government spending on healthcare infrastructure development and digital transformation has been a key driver behind this market’s expansion. Moreover, growing emphasis on patient satisfaction, data security, and administrative cost efficiency has accelerated the adoption of technologies such as big data, 3D printing, blockchain and artificial intelligence.
This rising demand for comprehensive digital healthcare solutions presents a compelling opportunity for players like Tempus AI (TEM - Free Report) and Hims & Hers Health (HIMS - Free Report) . That said, the healthcare sector’s increasing reliance on IT also introduces inherent risks, as disruptions in cloud-based systems could trigger significant data losses and potentially destabilize operations.
Price Performance Comparison
In the past year, shares of Tempus have surged 85.1% while those of Hims & Hers grew 36.3%.
Image Source: Zacks Investment Research
The Case for Tempus
Tempus is a Chicago-based healthcare technology company, focused on advancing precision medicine through artificial intelligence. The company’s Diagnostics growth is broad-based and sustained across periods. Also, its Data and services arm’s momentum is increasingly visible in multi-quarter bookings, which tend to be back-half weighted and convert over time. TEM ended the third quarter with $764.3 million in cash and marketable securities, providing ample capacity to fund AI compute, regulatory filings and commercial investments.
Meanwhile, Tempus strengthened its competitive position by entering multi-year strategic collaborations with AstraZeneca and Pathos to build the world’s largest multimodal foundation model in oncology. Through this, Tempus gets access to more than 300 petabytes of multimodal, outcome-linked data to train large-scale models. This dataset, spanning molecular, clinical, imaging and pathology information, gives it a significant advantage. It also makes Tempus a more valuable partner for pharmaceutical companies and health systems that rely on comprehensive, high-quality datasets for research, development, and clinical decision support.
The company is pursuing Advanced Diagnostic Laboratory Test (“ADLT”) migrations across parts of the menu, a pathway that can reset pricing and support reimbursement uplift. Reimbursement levels remain below peers, with timing contingent on multi-step regulatory processes. Effective execution of ADLT transitions, alongside expanding payer coverage, represents a critical near-term swing factor for revenue quality and margin visibility.
The Case for Hims & Hers
Hims & Hers Health is a San Francisco, CA-based consumer-centric health and wellness platform that redefines healthcare through personalized solutions and seamless digital access. The company is delivering exceptional top-line growth, driven by rising demand for weight-loss offerings, mental health services and personalized plans. Subscribers reached 2.5 million, demonstrating robust adoption of its consumer-first platform. Such rapid expansions, underpinned by sticky recurring revenues, place Hims & Hers in a unique growth category within healthcare.
The introduction of holistic GLP-1 programs has significantly scaled the company’s presence. In October, HIMS announced the launch of a new women’s health specialty focused on menopause and perimenopause, expanding access to personalized treatment plans through the platform.
In September, HIMS announced the launch of a new category in men’s health, offering access to innovative, affordable and personalized treatment plans for low testosterone. In May, the company introduced six months of prescription-only Wegovy at a new, affordable price of $549 per month for new customers only.
HIMS’ profitability remains in transition, shaped by deliberate spending on new specialties, international expansion, and vertical integration that temporarily pressure margins but are intended to support long-term recurring growth. Hims & Hers’ official entry into markets such as Canada and the U.K., along with continued expansion across Europe, reflects confidence in the portability of its business model.
TEM and HIMS’ Valuation
Tempus and Hims & Hers are trading at a forward 12-month price-to-sales (P/S) ratio of 7.16 and 2.83, respectively. Both companies are trading below their respective medians. However, HIMS is trading at a discount to TEM.
Image Source: Zacks Investment Research
Price Targets for TEM and HIMS
Based on short-term price targets by 12 analysts, the average price target for Tempus comes to $88.92, implying a 38.4% increase from the last close.
Image Source: Zacks Investment Research
Based on short-term price targets by 12 analysts, Hims & Hers average price target of $45.92 implies a 32.5% upside from the last close.
Image Source: Zacks Investment Research
Conclusion
Both Tempus and Hims & Hers presently carry a Zacks Rank #3 (Hold). Overall, Tempus’ expanding diagnostics franchise, strengthening data and services momentum, and deepening strategic partnerships position it well to capitalize on the growing adoption of AI-driven precision medicine. At the same time, Hims & Hers’ rapid subscriber growth, expanding specialty offerings, and scalable, consumer-first platform underscore its ability to drive sustained top-line growth. These initiatives act as key catalysts supporting the long-term outlook for both companies.
Image: Bigstock
TEM vs. HIMS: Which Medical Info Systems Stock Offers Greater Upside
Key Takeaways
From optimizing healthcare resource utilization to streamlining medical records and patient data management, the Medical Information Systems industry continues to broaden its scope at a rapid pace. Per the Precedence Research analysis, the global healthcare information systems market was valued at $519.23 billion in 2024 and is projected to surge to nearly $1,773.33 billion by 2034, registering a CAGR of 13.07% between 2025 and 2034.
Rising government spending on healthcare infrastructure development and digital transformation has been a key driver behind this market’s expansion. Moreover, growing emphasis on patient satisfaction, data security, and administrative cost efficiency has accelerated the adoption of technologies such as big data, 3D printing, blockchain and artificial intelligence.
This rising demand for comprehensive digital healthcare solutions presents a compelling opportunity for players like Tempus AI (TEM - Free Report) and Hims & Hers Health (HIMS - Free Report) . That said, the healthcare sector’s increasing reliance on IT also introduces inherent risks, as disruptions in cloud-based systems could trigger significant data losses and potentially destabilize operations.
Price Performance Comparison
In the past year, shares of Tempus have surged 85.1% while those of Hims & Hers grew 36.3%.
Image Source: Zacks Investment Research
The Case for Tempus
Tempus is a Chicago-based healthcare technology company, focused on advancing precision medicine through artificial intelligence. The company’s Diagnostics growth is broad-based and sustained across periods. Also, its Data and services arm’s momentum is increasingly visible in multi-quarter bookings, which tend to be back-half weighted and convert over time. TEM ended the third quarter with $764.3 million in cash and marketable securities, providing ample capacity to fund AI compute, regulatory filings and commercial investments.
Meanwhile, Tempus strengthened its competitive position by entering multi-year strategic collaborations with AstraZeneca and Pathos to build the world’s largest multimodal foundation model in oncology. Through this, Tempus gets access to more than 300 petabytes of multimodal, outcome-linked data to train large-scale models. This dataset, spanning molecular, clinical, imaging and pathology information, gives it a significant advantage. It also makes Tempus a more valuable partner for pharmaceutical companies and health systems that rely on comprehensive, high-quality datasets for research, development, and clinical decision support.
The company is pursuing Advanced Diagnostic Laboratory Test (“ADLT”) migrations across parts of the menu, a pathway that can reset pricing and support reimbursement uplift. Reimbursement levels remain below peers, with timing contingent on multi-step regulatory processes. Effective execution of ADLT transitions, alongside expanding payer coverage, represents a critical near-term swing factor for revenue quality and margin visibility.
The Case for Hims & Hers
Hims & Hers Health is a San Francisco, CA-based consumer-centric health and wellness platform that redefines healthcare through personalized solutions and seamless digital access. The company is delivering exceptional top-line growth, driven by rising demand for weight-loss offerings, mental health services and personalized plans. Subscribers reached 2.5 million, demonstrating robust adoption of its consumer-first platform. Such rapid expansions, underpinned by sticky recurring revenues, place Hims & Hers in a unique growth category within healthcare.
The introduction of holistic GLP-1 programs has significantly scaled the company’s presence. In October, HIMS announced the launch of a new women’s health specialty focused on menopause and perimenopause, expanding access to personalized treatment plans through the platform.
In September, HIMS announced the launch of a new category in men’s health, offering access to innovative, affordable and personalized treatment plans for low testosterone. In May, the company introduced six months of prescription-only Wegovy at a new, affordable price of $549 per month for new customers only.
HIMS’ profitability remains in transition, shaped by deliberate spending on new specialties, international expansion, and vertical integration that temporarily pressure margins but are intended to support long-term recurring growth. Hims & Hers’ official entry into markets such as Canada and the U.K., along with continued expansion across Europe, reflects confidence in the portability of its business model.
TEM and HIMS’ Valuation
Tempus and Hims & Hers are trading at a forward 12-month price-to-sales (P/S) ratio of 7.16 and 2.83, respectively. Both companies are trading below their respective medians. However, HIMS is trading at a discount to TEM.
Image Source: Zacks Investment Research
Price Targets for TEM and HIMS
Based on short-term price targets by 12 analysts, the average price target for Tempus comes to $88.92, implying a 38.4% increase from the last close.
Image Source: Zacks Investment Research
Based on short-term price targets by 12 analysts, Hims & Hers average price target of $45.92 implies a 32.5% upside from the last close.
Image Source: Zacks Investment Research
Conclusion
Both Tempus and Hims & Hers presently carry a Zacks Rank #3 (Hold). Overall, Tempus’ expanding diagnostics franchise, strengthening data and services momentum, and deepening strategic partnerships position it well to capitalize on the growing adoption of AI-driven precision medicine. At the same time, Hims & Hers’ rapid subscriber growth, expanding specialty offerings, and scalable, consumer-first platform underscore its ability to drive sustained top-line growth. These initiatives act as key catalysts supporting the long-term outlook for both companies.
However, based on 12-month price performance, valuation and analyst price targets, Hims & Hers is positioned to be a stronger investment option now over Tempus. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.