Accuray (NASDAQ:ARAY) vs. Check-Cap (NASDAQ:CHEK) Head to Head Contrast

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

Risk and Volatility

Check-Cap has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Accuray has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares Check-Cap and Accuray’s 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
Accuray	-4.28%	-34.06%	-4.34%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Check-Cap and Accuray, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Check-Cap	1	0	0	0	1.00
Accuray	1	0	1	0	2.00

Accuray has a consensus target price of $4.00, suggesting a potential upside of 371.25%. Given Accuray’s stronger consensus rating and higher probable upside, analysts plainly believe Accuray is more favorable than Check-Cap.

Institutional and Insider Ownership

1.1% of Check-Cap shares are held by institutional investors. Comparatively, 64.1% of Accuray shares are held by institutional investors. 0.5% of Check-Cap shares are held by insiders. Comparatively, 4.4% of Accuray shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Check-Cap and Accuray”s 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	-$25.15 million	($2.77)	-0.58
Accuray	$450.90 million	0.21	-$1.59 million	($0.16)	-5.31

Accuray has higher revenue and earnings than Check-Cap. Accuray is trading at a lower price-to-earnings ratio than Check-Cap, indicating that it is currently the more affordable of the two stocks.

Summary

Accuray beats Check-Cap on 9 of the 13 factors compared between the two stocks.

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. Check-Cap Ltd. was incorporated in 2004 and is based in Isfiya, Israel.

About Accuray

Accuray Incorporated designs, develops, manufactures, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the United States, Canada, Latin America, Asia, Australia, New Zealand, Europe, the Middle East, India, Africa, Japan, and China. It offers the CyberKnife platform, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of primary and metastatic tumors outside the brain, including tumors on or near the spine and in the breast, kidney, liver, lung, pancreas, and prostate. The company also provides the TomoTherapy platform, including the Radixact System, which allows for integrated radiation treatment planning, delivery, and data management, enabling clinicians to deliver ultra-precise treatments to approximately 50 patients per day; iDMS data management system, a fully integrated treatment planning and data management systems; and Accuray precision treatment planning system, a treatment planning and data management systems. In addition, it offers post-contract customer support, installation, training, and other professional services. The company primarily markets its products directly to customers, including hospitals and stand-alone treatment facilities through its sales organization, as well as to customers through sales agents and group purchasing organizations in the United States; and to customers directly and through distributors and sales agents internationally. Accuray Incorporated was incorporated in 1990 and is headquartered in Madison, Wisconsin.