Check Cap (NASDAQ: CHEK) and Hologic (NASDAQ:HOLX) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Earnings and Valuation

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This table compares Check Cap and Hologic’s gross 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 -$9.77 million ($6.42) -0.64
Hologic $3.06 billion 3.41 $755.50 million $2.03 18.57

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

Volatility & Risk

Check Cap has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500. Comparatively, Hologic has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Insider and Institutional Ownership

97.5% of Hologic shares are owned by institutional investors. 0.9% of Hologic 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Check Cap N/A -137.96% -103.53%
Hologic 34.53% 20.07% 7.11%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Check Cap and Hologic, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Check Cap 0 0 2 0 3.00
Hologic 0 4 9 0 2.69

Check Cap currently has a consensus target price of $5.50, indicating a potential upside of 32.85%. Hologic has a consensus target price of $47.54, indicating a potential upside of 26.13%. Given Check Cap’s stronger consensus rating and higher possible upside, equities analysts clearly believe Check Cap is more favorable than Hologic.

Summary

Hologic beats Check Cap on 10 of the 12 factors compared between the two stocks.

About Check Cap

Check-Cap Ltd., a clinical stage medical diagnostics company, engages in the development of an ingestible imaging capsule that utilizes low-dose X-rays for screening of the colon to detect polyps, masses, and colorectal cancers. Its C-Scan system consists of C-Scan Cap, an X-ray scanning capsule, which is designed to measure, collect, and transmit structural information; C-Scan Track, a biocompatible unit that is designed to track the capsule and record imaging and positioning data; and C-Scan View, a personal computer-based software package, which is designed to retrieve and process clinical data from the C-Scan Track, and to reconstruct and produce 3D visualization of the colon's inner surface. The company was founded in 2004 and is based in Isfiya, Israel.

About Hologic

Hologic, Inc. is a developer, manufacturer and supplier of diagnostics products, medical imaging systems and surgical products with an emphasis on women’s health. The Company operates through four segments: Diagnostics, Breast Health, GYN Surgical and Skeletal Health. The diagnostics products include Aptima family of assays, ThinPrep system, the Rapid Fetal Fibronectin Test and Procleix blood screening assays. It offers viral load assays for the quantitation of Hepatitis B Virus (HBV), Hepatitis C Virus (HCV) and Human Immunodeficiency Virus-1 (HIV-1). The Breast Health products include breast imaging and related products and accessories, including digital mammography systems, computer-aided detection (CAD) and breast biopsy guidance systems. The GYN Surgical products include NovaSure Endometrial Ablation System and MyoSure Hysteroscopic Tissue Removal System. The Skeletal Health segment offers Discovery and Horizon X-ray bone densitometers and mini C-arm imaging systems.

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