Financial Review: Check-Cap (NASDAQ:MBAI) versus TransEnterix (OTCMKTS:TRXDW)

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

Insider & Institutional Ownership

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

Risk & Volatility

Check-Cap has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, TransEnterix has a beta of 2.56, meaning that its stock price is 156% more volatile than the S&P 500.

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 & Valuation

This table compares Check-Cap and TransEnterix”s top-line 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)	-0.59
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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations 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

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.