Check-Cap (NASDAQ: CHEK) is one of 19 public companies in the “Specialty & Advanced Pharmaceuticals” industry, but how does it contrast to its competitors? We will compare Check-Cap to similar companies based on the strength of its analyst recommendations, valuation, profitability, risk, earnings, dividends and institutional ownership.

Insider and Institutional Ownership

19.3% of Check-Cap shares are owned by institutional investors. Comparatively, 66.4% of shares of all “Specialty & Advanced Pharmaceuticals” companies are owned by institutional investors. 10.0% of shares of all “Specialty & Advanced Pharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Check-Cap and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Check-Cap N/A -98.88% -80.97%
Check-Cap Competitors -538.85% -41.85% -24.81%

Analyst Recommendations

This is a breakdown of recent recommendations for Check-Cap and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Check-Cap 0 0 3 0 3.00
Check-Cap Competitors 63 294 943 27 2.70

Check-Cap presently has a consensus price target of $6.00, suggesting a potential upside of 217.46%. As a group, “Specialty & Advanced Pharmaceuticals” companies have a potential upside of 16.51%. Given Check-Cap’s stronger consensus rating and higher possible upside, equities analysts plainly believe Check-Cap is more favorable than its competitors.

Risk and Volatility

Check-Cap has a beta of -0.35, indicating that its stock price is 135% less volatile than the S&P 500. Comparatively, Check-Cap’s competitors have a beta of 0.85, indicating that their average stock price is 15% less volatile than the S&P 500.

Earnings & Valuation

This table compares Check-Cap and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Check-Cap N/A -$9.62 million -3.20
Check-Cap Competitors $2.57 billion $977.16 million 0.76

Check-Cap’s competitors have higher revenue and earnings than Check-Cap. Check-Cap is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Check-Cap competitors beat Check-Cap on 8 of the 12 factors compared.

About Check-Cap

Check-Cap Ltd. (Check-Cap) is a clinical-stage medical diagnostics company. The Company is engaged in the development of an ingestible imaging capsule that utilizes low-dose X-rays for the detection and imaging of colonic polyps and colorectal cancers, or CRC. The Company’s system consists of main components, such as ingestible scanning capsule; Capsule Positioning System (CPS), a recorder worn on the patient’s back, and a personal computer (PC)-based work station for data reconstruction and image processing. The Company’s scanning capsule will be swallowed and propelled by natural motility through the gastrointestinal tract and excreted naturally with no need for retrieval for data collection. Its scanning capsule employs low-dose X-rays, which allow the system to image the interior lining of the colon even when surrounded by intestinal content. Its capsule transmits information to a receiving device worn on the patient’s body that stores the information for off-line analysis.

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