Financial Survey: 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 contrast to its peers? We will compare Check-Cap to related companies based on the strength of its profitability, dividends, analyst recommendations, valuation, institutional ownership, risk and earnings.

Profitability

This table compares Check-Cap and its peers’ 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%

Analyst Ratings

This is a summary of current ratings and price targets for Check-Cap and its peers, 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 peers stronger consensus rating and higher possible upside, analysts plainly believe Check-Cap has less favorable growth aspects than its peers.

Risk and Volatility

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

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Check-Cap	N/A	-$25.15 million	-0.66
Check-Cap Competitors	$59.54 million	-$32.15 million	4.18

Check-Cap’s peers have higher revenue, but lower earnings than Check-Cap. Check-Cap is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

1.1% of Check-Cap shares are owned by institutional investors. Comparatively, 22.5% 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, 18.4% of shares of all “Surgical, Medical, And Dental Instruments And Supplies” companies are owned by company 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.

Summary

Check-Cap peers 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.