Tempus AI vs. Doximity: Which AI in Healthcare Stock is a Better Buy?

Urmimala Biswas

Fri, Apr 11, 2025, 1:00 PM 5 min read

Artificial intelligence (AI) is rapidly being integrated into every domain of healthcare, giving birth to a new class of tech-driven innovators. Tempus AI TEM and Doximity DOCS stand out as emerging players in the AI health tech space. These two offer distinct approaches to innovation and market disruption.

Tempus AI is focused on leveraging AI-driven precision medicine, particularly in oncology and chronic disease management, while Doximity operates as a digital platform connecting medical professionals with tools for communication, telehealth and workflow efficiency. With both companies showing promise, the question arises: which stock is the better buy at this moment? Let's delve deeper.

3 Reasons to Be Bullish on Tempus AI

Revenue and Margins Expanding Together: Tempus AI ended 2024 on a high note, posting 35.8% year-over-year revenue growth in the fourth quarter. Even more impressive was the fact that its gross profit rose 49.7%, highlighting improving operational leverage. Its high-margin Data and Services business gained traction, supported by a 140% net revenue retention rate and $940 million in remaining contract value. Management sees this margin momentum as a lever to reinvest in technology, R&D and top-tier talent.

Acquisitions Reinforce Clinical and Data Infrastructure: Tempus AI’s 2025 acquisitions of Deep 6 AI and Ambry Genetics have expanded its clinical footprint to more than 750 sites and 30 million patients, while enhancing lab infrastructure and data depth-strengthening its precision medicine platform.

Positive EBITDA on the Horizon: Although fourth-quarter adjusted EBITDA was negative $7.8 million, it reflected a $27.3 million year-over-year improvement. With more than 25% overall business growth and an expected $5 million in positive adjusted EBITDA ahead, Tempus AI is trending toward long-term profitability. This reflects disciplined execution and cost management.

3 Reasons to Be Bullish on Doximity

Strong Financials With Scalable Margins: Doximity posted stellar third-quarter fiscal 2025 results, with revenues up 25% year over year, 10% above the guidance. The company raised full-year revenue expectations by $28 million, driven by robust pharma demand. Adjusted EBITDA hit a record $102 million with a 61% margin, up from 54% last year. With 93% adjusted gross margins and 30% growth in free cash flow, Doximity’s scalable model is clearly paying off.

Growing Engagement and Telehealth Strength: User engagement is increasing across all metrics, with over 1 million prescribers on the news feed and 610,000 using workflow tools. AI usage jumped 60% quarter over quarter. Doximity has been named Best in KLAS for telehealth for the fourth straight year and now supports over 250 hospital systems.

Expanding Market Share With Strong Outlook: As the healthcare provider (digital marketing space grows 5-7%, Doximity is positioned to outpace the market, thanks to high user engagement and deep product integration. The company expects 13% revenue growth in the fiscal fourth quarter and 19% for the full year, reinforcing its bullish trajectory.

Stock Performance & Valuation

TEM (up 24.6%) has outperformed DOCS (up 3.7%) over the past three months. Yet, in the past year, DOCS has rallied 99.3% compared with TEM’s 0.1% rise.