Check Cap (NASDAQ: CHEK) and DARA Biosciences (NASDAQ:DARA) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Check Cap and DARA Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Check Cap N/A -129.20% -100.81%
DARA Biosciences -228.42% -145.61% -100.38%

Earnings and Valuation

This table compares Check Cap and DARA Biosciences’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Check Cap N/A N/A -$8.82 million ($0.61) -1.43
DARA Biosciences N/A N/A N/A ($0.52) -1.69

DARA Biosciences is trading at a lower price-to-earnings ratio than Check Cap, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

19.0% of Check Cap shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Check Cap has a beta of -0.67, indicating that its stock price is 167% less volatile than the S&P 500. Comparatively, DARA Biosciences has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Check Cap and DARA Biosciences, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Check Cap 0 0 3 0 3.00
DARA Biosciences 0 0 0 0 N/A

Check Cap presently has a consensus price target of $5.50, indicating a potential upside of 532.18%. Given Check Cap’s higher possible upside, analysts clearly believe Check Cap is more favorable than DARA Biosciences.

Summary

Check Cap beats DARA Biosciences on 6 of the 9 factors compared between the two stocks.

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.

About DARA Biosciences

DARA BioSciences Inc is specialty pharmaceutical company based in the United States. The Company’s primary focus is on the commercialization of oncology treatment and oncology supportive care pharmaceutical products, including Soltamox, an oral solution of tamoxifen citrate; cancer support therapeutics, including Gelclair, indicated for the treatment of oral mucositis and Bionect, for the management of irritation of the skin as well as first and second degree burns, and Three Mission Pharmacal products, including Ferralet 90 (for anemia), Binosto (alendronate sodium effervescent tablet indicated for the treatment of osteoporosis) and Aquoral (for cancer related dry mouth). The Company has a clinical development asset, KRN5500, which is a Phase II product candidate targeted for treating cancer patients with painful treatment-refractory chronic chemotherapy induced peripheral neuropathy. The Company is a subsidiary of Midatech Pharma Plc.

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