Critical Comparison: Check-Cap (MBAI) & Its Rivals

Check-Cap (NASDAQ:MBAI) is one of 27 publicly-traded companies in the “Surgical, Medical, And Dental Instruments And Supplies” industry, but how does it contrast to its competitors? We will compare Check-Cap to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.

Insider and Institutional Ownership

1.1% of Check-Cap shares are owned by institutional investors. Comparatively, 19.3% of shares of all “Surgical, Medical, And Dental Instruments And Supplies” companies are owned by institutional investors. 0.5% of Check-Cap shares are owned by insiders. Comparatively, 19.5% of shares of all “Surgical, Medical, And Dental Instruments And Supplies” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Check-Cap	N/A	-$25.15 million	-0.64
Check-Cap Competitors	$61.19 million	-$32.64 million	5.16

Check-Cap’s competitors have higher revenue, but lower 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Check-Cap and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Check-Cap	1	0	0	0	1.00
Check-Cap Competitors	80	82	161	7	2.29

As a group, “Surgical, Medical, And Dental Instruments And Supplies” companies have a potential upside of 55.05%. Given Check-Cap’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Check-Cap has less favorable growth aspects than its competitors.

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	N/A	N/A
Check-Cap Competitors	-569.68%	-122.96%	-53.63%

Risk and Volatility

Check-Cap has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Check-Cap’s competitors have a beta of 1.80, suggesting that their average share price is 80% more volatile than the S&P 500.

Summary

Check-Cap competitors beat Check-Cap on 9 of the 13 factors compared.

About Check-Cap

Check-Cap Ltd., a clinical stage medical diagnostics company, engages in the development of a capsule-based screening technology that utilizes ultra-low-dose X-rays to scan the inner lining of the colon for precancerous polyps, and other structural abnormalities in Israel. Its C-Scan system consists of C-Scan Cap, an X-ray scanning capsule for detection of suspected polyps; C-Scan Track, a disposable system attached to the patient’s back through biocompatible adhesive skin patches; and C-Scan View software, a client/server-based application that enables procedure data download from the C-Scan Track, data analysis, and report generation. The company was incorporated in 2004 and is based in Isfiya, Israel.