Critical Survey: Check-Cap (MBAI) & Its Competitors

Check-Cap (NASDAQ:MBAI) is one of 29 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 businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

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	-672.41%	-133.75%	-59.01%

Analyst Recommendations

This is a breakdown of recent ratings for Check-Cap and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Check-Cap	1	0	0	0	1.00
Check-Cap Competitors	77	77	156	6	2.29

As a group, “Surgical, Medical, And Dental Instruments And Supplies” companies have a potential upside of 43.22%. Given Check-Cap’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Check-Cap has less favorable growth aspects than its competitors.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Check-Cap	N/A	-$25.15 million	-0.66
Check-Cap Competitors	$59.55 million	-$32.15 million	4.35

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.

Institutional and Insider Ownership

1.1% of Check-Cap shares are held by institutional investors. Comparatively, 22.5% of shares of all “Surgical, Medical, And Dental Instruments And Supplies” companies are held by institutional investors. 0.5% of Check-Cap shares are held by insiders. Comparatively, 18.1% of shares of all “Surgical, Medical, And Dental Instruments And Supplies” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Check-Cap has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Check-Cap’s competitors have a beta of 1.76, meaning that their average share price is 76% 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.