Check-Cap (NASDAQ: CHEK) and Aimmune Therapeutics (NASDAQ:AIMT) 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, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for Check-Cap and Aimmune Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Check-Cap 0 0 3 0 3.00
Aimmune Therapeutics 0 0 2 0 3.00

Check-Cap presently has a consensus target price of $6.00, suggesting a potential upside of 238.98%. Aimmune Therapeutics has a consensus target price of $36.67, suggesting a potential upside of 57.91%. Given Check-Cap’s higher probable upside, equities analysts clearly believe Check-Cap is more favorable than Aimmune Therapeutics.

Insider and Institutional Ownership

19.3% of Check-Cap shares are owned by institutional investors. Comparatively, 72.9% of Aimmune Therapeutics shares are owned by institutional investors. 24.6% of Aimmune Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Check-Cap and Aimmune Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Check-Cap N/A N/A -$9.62 million ($0.59) -3.00
Aimmune Therapeutics N/A N/A -$106.22 million ($2.25) -10.32

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

Risk & Volatility

Check-Cap has a beta of -0.37, suggesting that its stock price is 137% less volatile than the S&P 500. Comparatively, Aimmune Therapeutics has a beta of -1.1, suggesting that its stock price is 210% less volatile than the S&P 500.

Profitability

This table compares Check-Cap and Aimmune Therapeutics’ 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%
Aimmune Therapeutics N/A -44.53% -42.00%

Summary

Check-Cap beats Aimmune Therapeutics on 5 of the 9 factors compared between the two stocks.

Check-Cap Company Profile

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.

Aimmune Therapeutics Company Profile

Aimmune Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing a therapeutic approach, including the development of product candidates, for the treatment of peanut and other food allergies. The Company’s therapeutic approach, which it refers to as Characterized Oral Desensitization Immunotherapy (CODIT), is a system designed to desensitize patients to food allergens using characterized biologic products, defined treatment protocols and support services. The Company’s lead CODIT product candidate, AR101, is an investigational biologic for the treatment of patients with peanut allergy. The Company has initiated Peanut Allergy Oral Immunotherapy Study of AR101 for Desensitization in Children and Adults (PALISADE), its Phase III registration trial of AR101. The Company is in the process of evaluating additional delivery forms for AR101 for the maintenance phase.

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