TransEnterix (OTCMKTS:TRXDW) vs. Check-Cap (NASDAQ:MBAI) Critical Survey

Check-Cap (NASDAQ:MBAI) and TransEnterix (OTCMKTS:TRXDW) are both small-cap manufacturing companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

Check-Cap has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, TransEnterix has a beta of 2.56, meaning that its share price is 156% more volatile than the S&P 500.

Insider & Institutional Ownership

1.1% of Check-Cap shares are owned by institutional investors. Comparatively, 8.2% of TransEnterix shares are owned by institutional investors. 0.5% of Check-Cap shares are owned by company insiders. Comparatively, 3.1% of TransEnterix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Check-Cap and TransEnterix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Check-Cap	1	0	0	0	1.00
TransEnterix	0	0	0	0	0.00

Profitability

This table compares Check-Cap and TransEnterix’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
TransEnterix	-2,149.15%	-83.74%	-64.94%

Earnings and Valuation

This table compares Check-Cap and TransEnterix”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)	-0.60
TransEnterix	$8.53 million	2.51	-$154.20 million	($4.22)	-0.04

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

Summary

Check-Cap beats TransEnterix on 6 of the 11 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. The company was incorporated in 2004 and is based in Isfiya, Israel.

About TransEnterix

TransEnterix, Inc., a medical device company, engages in the research, development, and sale of medical device robotics to enhance minimally invasive surgery. The company offers Senhance System, a multi-port robotic surgery system, which allows up to four arms to control robotic instruments and a camera in Europe. It also develops SurgiBot System, a single-port system robotically enhanced laparoscopic surgical platform.. TransEnterix, Inc. is headquartered in Morrisville, North Carolina.