MRK vs. TEM: Merck vs. Tempus AI Stock Comparison

Company Profile

Merck (MRK) and Tempus AI (TEM) both fall under the Pharmaceuticals, Biotechnology & Life Sciences industry group, but MRK is classified in Pharmaceuticals while TEM is classified in Life Sciences Tools & Services.

Merck (MRK) carries decades of public-market history since January 2, 1962, while Tempus AI (TEM) listed on June 14, 2024 — long-window comparisons have far more historical data on the MRK side.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Tempus AI (TEM) has a highly aggressive beta of 3.34, indicating much higher sensitivity to broad-market moves, while Merck (MRK) is defensive at 0.11 and tends to be less market-sensitive — a wide gap in beta profiles.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Tempus AI (TEM) reports a negative ROE of -37.55%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Merck (MRK) reports 5.06%, ranking against industry peers normally.

Tempus AI (TEM) reports a negative net margin of -12.54%, usually indicating a net loss over the period. Meanwhile Merck (MRK) reports 3.64%, ranking against industry peers normally.

Tempus AI (TEM) reports a negative operating margin of -13.82%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Merck (MRK) reports 35.22%, ranking against industry peers normally.

Profitability Metrics

Growth

Tempus AI (TEM) at 83.41% sits in the top revenue growth quartile, while Merck (MRK) at 1.31% is closer to the peer norm — faster top-line expansion for TEM.

Only one side can be read here: Merck (MRK) reports EPS growth of 8.01%, ranked against its industry; Tempus AI (TEM) has no EPS growth figure this period.

Growth Metrics

Financial Strength

Tempus AI (TEM) at 2.61 keeps current ratio within its industry’s typical mid-range, while Merck (MRK) at 1.35 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for MRK.

Both balance sheets lean debt-heavy versus peers, but TEM is more stretched: Merck (MRK) at 1.20 sits in the higher-leverage quartile and Tempus AI (TEM) at 2.86 is above its industry benchmark range.

Financial Strength Metrics

Dividends

Tempus AI (TEM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Merck (MRK) reports a yield of 2.29%, ranking against industry peers normally.

Merck (MRK) reports payout ratio above 100% at 343.43%, meaning dividends exceeded current-period earnings; Tempus AI (TEM) pays no dividend (payout 0.00%).

Dividend Metrics

Valuation

An earnings multiple is available for just one side: Merck (MRK) trades at 148.21 times trailing earnings, ranked against its peers, while Tempus AI (TEM) has no P/E ratio this period.

On P/S ratio, both Merck (MRK) at 5.37 and Tempus AI (TEM) at 9.19 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

Both look rich against book: Merck (MRK) at 8.06 sits in the upper P/B ratio quartile, and Tempus AI (TEM) at 27.66 prices even higher, above its industry range.

Valuation Metrics