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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Assembly Biosciences and Check-Cap, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Assembly Biosciences 0 0 2 0 3.00
Check-Cap 0 0 3 0 3.00

Assembly Biosciences currently has a consensus target price of $42.50, suggesting a potential upside of 27.47%. Check-Cap has a consensus target price of $6.00, suggesting a potential upside of 328.57%. Given Check-Cap’s higher possible upside, analysts clearly believe Check-Cap is more favorable than Assembly Biosciences.

Insider & Institutional Ownership

62.2% of Assembly Biosciences shares are owned by institutional investors. Comparatively, 19.4% of Check-Cap shares are owned by institutional investors. 19.6% of Assembly Biosciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Assembly Biosciences has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Check-Cap has a beta of -0.51, meaning that its share price is 151% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Assembly Biosciences N/A -81.70% -43.94%
Check-Cap N/A -129.20% -100.81%

Valuation and Earnings

This table compares Assembly Biosciences and Check-Cap’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Assembly Biosciences N/A N/A -$44.26 million ($2.97) -11.23
Check-Cap N/A N/A -$8.82 million ($0.61) -2.30

Assembly Biosciences 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

Assembly Biosciences beats Check-Cap on 5 of the 9 factors compared between the two stocks.

Assembly Biosciences Company Profile

Assembly Biosciences, Inc. is a biotechnology company. The Company is engaged in developing two platform programs, such as a class of oral therapeutics for the treatment of hepatitis B virus (HBV) infection, and a class of oral synthetic live therapeutics, which are designed to restore health to a dysbiotic microbiome. It has discovered various core protein Allosteric Modulators (CpAMs), which are small molecules that directly target and allosterically modulate the HBV core (HBc) protein. Its Microbiome Program consists of an integrated platform that includes a strain identification and selection process, methods for strain isolation and growth under current good manufacturing practice conditions, and a delivery system, GEMICEL, which allows for targeted oral delivery of live biologic and conventional therapies to the lower gastrointestinal (GI) tract. The lead product candidate from this platform, AB-M101, is in development for the treatment of clostridium difficile-infections.

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.

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