Financial Analysis: Check-Cap (MBAI) & The Competition

Check-Cap (NASDAQ:MBAI) is one of 28 publicly-traded companies in the “Surgical, Medical, And Dental Instruments And Supplies” industry, but how does it contrast to its rivals? We will compare Check-Cap to related companies based on the strength of its dividends, institutional ownership, valuation, profitability, risk, analyst recommendations and earnings.

Insider & 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 is poised for long-term growth.

Volatility and Risk

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Check-Cap and its rivals, 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	77	78	155	6	2.28

As a group, “Surgical, Medical, And Dental Instruments And Supplies” companies have a potential upside of 32.53%. Given Check-Cap’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Check-Cap has less favorable growth aspects than its rivals.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Check-Cap	N/A	-$25.15 million	-0.59
Check-Cap Competitors	$60.80 million	-$32.15 million	5.39

Check-Cap’s rivals have higher revenue, but lower earnings than Check-Cap. Check-Cap is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Check-Cap and its rivals’ 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	-570.12%	-153.34%	-54.42%

Summary

Check-Cap rivals 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.