Financial Contrast: Check-Cap (NASDAQ:CHEK) vs. TransMedics Group (NASDAQ:TMDX)

Check-Cap (NASDAQ:CHEK) and TransMedics Group (NASDAQ:TMDX) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Institutional & Insider Ownership

1.1% of Check-Cap shares are owned by institutional investors. Comparatively, 99.7% of TransMedics Group shares are owned by institutional investors. 0.5% of Check-Cap shares are owned by insiders. Comparatively, 7.0% of TransMedics Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Check-Cap and TransMedics Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Check-Cap	1	0	0	0	1.00
TransMedics Group	0	5	8	0	2.62

TransMedics Group has a consensus price target of $130.73, suggesting a potential upside of 15.28%. Given TransMedics Group’s stronger consensus rating and higher possible upside, analysts plainly believe TransMedics Group is more favorable than Check-Cap.

Profitability

This table compares Check-Cap and TransMedics Group’s 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
TransMedics Group	16.20%	31.42%	10.55%

Earnings & Valuation

This table compares Check-Cap and TransMedics Group”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	-$25.15 million	($2.77)	-0.67
TransMedics Group	$441.54 million	8.78	$35.46 million	$2.47	45.91

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

Volatility and Risk

Check-Cap has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, TransMedics Group has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500.

Summary

TransMedics Group beats Check-Cap on 13 of the 13 factors compared between the two stocks.

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. Check-Cap Ltd. was incorporated in 2004 and is based in Isfiya, Israel.

About TransMedics Group

TransMedics Group, Inc., a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients in the United States and internationally. The company offers Organ Care System (OCS), a portable organ perfusion, optimization, and monitoring system that utilizes its proprietary and customized technology to replicate near-physiologic conditions for donor organs outside of the human body. Its OCS includes OCS LUNG for the preservation of standard criteria donor lungs for double-lung transplantation; OCS Heart, a technology for preservation of DBD donor hearts deemed unsuitable due to limitations of cold storage and for ex vivo reanimation, functional monitoring, and beating-heart preservation of donation-after-circulatory-death hearts; and OCS Liver for the preservation of DBD and DCD of donor livers. The company also developed national OCS program, a turnkey solution for outsourced organ retrieval; and provides OCS organ management and logistics services, including aviation and ground transportation, and other coordination activity. The company was founded in 1998 and is headquartered in Andover, Massachusetts.