Critical Survey: Check-Cap (MBAI) and Its Competitors

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 competitors? We will compare Check-Cap to similar businesses based on the strength of its institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Institutional and Insider Ownership

1.1% of Check-Cap shares are held by institutional investors. Comparatively, 19.3% 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, 19.9% of shares of all “Surgical, Medical, And Dental Instruments And Supplies” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Check-Cap and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Check-Cap	N/A	-$25.15 million	-0.64
Check-Cap Competitors	$60.49 million	-$27.52 million	1.56

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

Risk and Volatility

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Check-Cap and its competitors, as provided 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	80	82	165	7	2.30

As a group, “Surgical, Medical, And Dental Instruments And Supplies” companies have a potential upside of 54.86%. Given Check-Cap’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Check-Cap has less favorable growth aspects than its competitors.

Profitability

This table compares Check-Cap and its competitors’ 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%

Summary

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

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. The company was incorporated in 2004 and is based in Isfiya, Israel.