Reviewing Check-Cap (MBAI) and Its Rivals

Check-Cap (NASDAQ:MBAI) is one of 28 public companies in the “Surgical, Medical, And Dental Instruments And Supplies” industry, but how does it weigh in compared to its rivals? We will compare Check-Cap to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, dividends and risk.

Analyst Recommendations

This is a summary of current ratings for Check-Cap and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Check-Cap	1	0	0	0	1.00
Check-Cap Competitors	77	76	156	6	2.29

As a group, “Surgical, Medical, And Dental Instruments And Supplies” companies have a potential upside of 51.09%. Given Check-Cap’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Check-Cap has less favorable growth aspects than its rivals.

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	-672.41%	-133.75%	-59.01%

Insider & Institutional Ownership

1.1% of Check-Cap shares are held by institutional investors. Comparatively, 22.5% of shares of all “Surgical, Medical, And Dental Instruments And Supplies” companies are held by institutional investors. 0.5% of Check-Cap shares are held by company insiders. Comparatively, 18.1% of shares of all “Surgical, Medical, And Dental Instruments And Supplies” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Check-Cap and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Check-Cap	N/A	-$25.15 million	-0.66
Check-Cap Competitors	$58.84 million	-$32.15 million	4.18

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.

Volatility & Risk

Check-Cap has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Check-Cap’s rivals have a beta of 1.76, meaning that their average share price is 76% more volatile than the S&P 500.

Summary

Check-Cap rivals beat Check-Cap on 8 of the 12 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.