Comparing Check-Cap (NASDAQ:MBAI) and TransEnterix (OTCMKTS:TRXDW)

TransEnterix (OTCMKTS:TRXDW) and Check-Cap (NASDAQ:MBAI) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Profitability

This table compares TransEnterix and Check-Cap’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TransEnterix	-2,149.15%	-83.74%	-64.94%
Check-Cap	N/A	N/A	N/A

Earnings & Valuation

This table compares TransEnterix and Check-Cap”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransEnterix	$8.53 million	2.51	-$154.20 million	($4.22)	-0.04
Check-Cap	N/A	N/A	-$25.15 million	($2.77)	-0.62

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

Volatility and Risk

TransEnterix has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500. Comparatively, Check-Cap has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Insider and Institutional Ownership

8.2% of TransEnterix shares are owned by institutional investors. Comparatively, 1.1% of Check-Cap shares are owned by institutional investors. 3.1% of TransEnterix shares are owned by company insiders. Comparatively, 0.5% of Check-Cap shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for TransEnterix and Check-Cap, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransEnterix	0	0	0	0	0.00
Check-Cap	1	0	0	0	1.00

Summary

Check-Cap beats TransEnterix on 6 of the 11 factors compared between the two stocks.

About TransEnterix

TransEnterix, Inc., a medical device company, engages in the research, development, and sale of medical device robotics to enhance minimally invasive surgery. The company offers Senhance System, a multi-port robotic surgery system, which allows up to four arms to control robotic instruments and a camera in Europe. It also develops SurgiBot System, a single-port system robotically enhanced laparoscopic surgical platform.. TransEnterix, Inc. is headquartered in Morrisville, North Carolina.

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.