Check-Cap (MBAI) and Its Peers Critical Review

Check-Cap (NASDAQ:MBAI) is one of 27 public companies in the “Surgical, Medical, And Dental Instruments And Supplies” industry, but how does it compare to its rivals? We will compare Check-Cap to related companies based on the strength of its risk, earnings, profitability, institutional ownership, analyst recommendations, valuation and dividends.

Volatility & Risk

Check-Cap has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Check-Cap’s rivals have a beta of 1.80, indicating that their average stock price is 80% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Check-Cap	N/A	-$25.15 million	-0.69
Check-Cap Competitors	$61.19 million	-$27.52 million	1.49

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	-569.68%	-123.14%	-53.62%

Institutional & Insider 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 company insiders. Comparatively, 19.9% of shares of all “Surgical, Medical, And Dental Instruments And Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Check-Cap	1	0	0	0	1.00
Check-Cap Competitors	80	82	163	7	2.29

As a group, “Surgical, Medical, And Dental Instruments And Supplies” companies have a potential upside of 54.99%. 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.

Summary

Check-Cap rivals beat Check-Cap on 9 of the 13 factors compared.

Check-Cap Company Profile

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.