TEM vs. PANW

Last updated Jun 16, 2026

TEM (Tempus AI, Inc) and PANW (Palo Alto Networks, Inc.) are both stocks. TEM operates in Health Information Services (Healthcare), while PANW operates in Software - Infrastructure (Technology). Over the past year, TEM returned -26.60% vs 44.97% for PANW. At a 0.26 correlation, their price movements are largely independent.

Performance

TEM vs. PANW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Tempus AI, Inc (TEM) and Palo Alto Networks, Inc. (PANW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TEM achieves a -11.40% return, which is significantly lower than PANW's 54.47% return.

TEM

• 1D: 9.41%
• 1M: 19.10%
• YTD: -11.40%
• 6M: -23.81%
• 1Y: -26.60%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PANW

• 1D: 1.76%
• 1M: 17.18%
• YTD: 54.47%
• 6M: 53.08%
• 1Y: 44.97%
• 3Y*: 32.16%
• 5Y*: 36.26%
• 10Y*: 29.54%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TEM vs. PANW - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TEM Tempus AI, Inc	-11.40%	74.91%	-15.60%
PANW Palo Alto Networks, Inc.	54.47%	1.23%	13.85%

Correlation

The correlation between TEM and PANW is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (All Time) Calculated using the full available price history since Jun 14, 2024	0.26

Fundamentals

Market Cap TEM : $9.36B PANW : $211.70B
EPS TEM : -$1.73 PANW : $1.17
PS Ratio TEM : 6.73 PANW : 19.28
PB Ratio TEM : 22.49 PANW : 7.65
Total Revenue (TTM) TEM : $1.36B PANW : $10.61B
Gross Profit (TTM) TEM : $977.64M PANW : $7.63B
EBITDA (TTM) TEM : -$233.09M PANW : $1.33B

Return for Risk

TEM vs. PANW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TEM

TEM Risk / Return Rank: 26
TEM Sharpe Ratio Rank: 24
TEM Sortino Ratio Rank: 26
TEM Omega Ratio Rank: 26
TEM Calmar Ratio Rank: 27
TEM Martin Ratio Rank: 28

PANW

PANW Risk / Return Rank: 70
PANW Sharpe Ratio Rank: 77
PANW Sortino Ratio Rank: 70
PANW Omega Ratio Rank: 71
PANW Calmar Ratio Rank: 67
PANW Martin Ratio Rank: 67

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TEM vs. PANW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Tempus AI, Inc (TEM) and Palo Alto Networks, Inc. (PANW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	TEM	PANW	Difference
Sharpe ratio: Return per unit of total volatility	-0.41	1.16	-1.57
Sortino ratio: Return per unit of downside risk	-0.24	1.66	-1.90
Omega ratio: Gain probability vs. loss probability	0.97	1.22	-0.24
Calmar ratio: Return relative to maximum drawdown	-0.45	1.26	-1.71
Martin ratio: Return relative to average drawdown	-0.74	2.84	-3.58

TEM vs. PANW - Sharpe Ratio Comparison

The current TEM Sharpe Ratio is -0.41, which is lower than the PANW Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of TEM and PANW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TEM vs. PANW - Drawdown Comparison

The maximum TEM drawdown since its inception was -58.99%, which is greater than PANW's maximum drawdown of -47.98%. Use the drawdown chart below to compare losses from any high point for TEM and PANW.

Drawdown Indicators

	TEM	PANW	Difference
Max Drawdown Largest peak-to-trough decline	-58.99%	-47.98%	-11.01%
Max Drawdown (1Y) Largest decline over 1 year	-58.96%	-36.01%	-22.95%
Max Drawdown (3Y) Largest decline over 3 years	—	-36.01%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-36.01%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-47.98%	—
Current Drawdown Current decline from peak	-49.33%	-5.30%	-44.03%
Average Drawdown Average peak-to-trough decline	-32.03%	-14.68%	-17.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	35.80%	15.88%	+19.92%

Volatility

TEM vs. PANW - Volatility Comparison

Tempus AI, Inc (TEM) has a higher volatility of 23.47% compared to Palo Alto Networks, Inc. (PANW) at 16.60%. This indicates that TEM's price experiences larger fluctuations and is considered to be riskier than PANW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TEM	PANW	Difference
Volatility (1M) Calculated over the trailing 1-month period	23.47%	16.60%	+6.87%
Volatility (6M) Calculated over the trailing 6-month period	46.76%	32.32%	+14.44%
Volatility (1Y) Calculated over the trailing 1-year period	64.92%	39.03%	+25.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	98.42%	41.73%	+56.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	98.42%	38.64%	+59.78%

Dividends

TEM vs. PANW - Dividend Comparison

Neither TEM nor PANW has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

TEM vs. PANW - Profitability Comparison

The chart below illustrates the profitability comparison between Tempus AI, Inc and Palo Alto Networks, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

TEM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Tempus AI, Inc reported a gross profit of 247.16M and revenue of 348.12M. Therefore, the gross margin over that period was 71.0%.

PANW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported a gross profit of 2.03B and revenue of 3.00B. Therefore, the gross margin over that period was 67.6%.

TEM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Tempus AI, Inc reported an operating income of -84.71M and revenue of 348.12M, resulting in an operating margin of -24.3%.

PANW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported an operating income of -186.00M and revenue of 3.00B, resulting in an operating margin of -6.2%.

TEM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Tempus AI, Inc reported a net income of -125.92M and revenue of 348.12M, resulting in a net margin of -36.2%.

PANW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported a net income of -177.00M and revenue of 3.00B, resulting in a net margin of -5.9%.

Frequently Asked Questions

Can I hold both TEM and PANW in my portfolio?

TEM and PANW have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TEM or PANW?

TEM has higher volatility (23.47%) compared to PANW (16.60%). In terms of maximum drawdown, TEM dropped -58.99% vs PANW's -47.98%.

Which has better risk-adjusted returns?

PANW currently has the higher Sharpe Ratio (1.16 vs -0.41), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.