Critical Contrast: Hologic (NASDAQ:HOLX) and Check Cap (CHEK)

Check Cap (NASDAQ: CHEK) and Hologic (NASDAQ:HOLX) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Valuation & Earnings

This table compares Check Cap and Hologic’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Check Cap N/A N/A -$9.77 million ($6.42) -0.69
Hologic $3.06 billion 3.46 $755.50 million $2.03 19.12

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

Insider & Institutional Ownership

98.5% of Hologic shares are owned by institutional investors. 0.8% of Hologic shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Check Cap and Hologic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Check Cap 0 0 2 0 3.00
Hologic 0 5 9 0 2.64

Check Cap presently has a consensus target price of $66.00, indicating a potential upside of 1,400.00%. Hologic has a consensus target price of $45.00, indicating a potential upside of 15.92%. Given Check Cap’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Check Cap is more favorable than Hologic.

Volatility & Risk

Check Cap has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Hologic has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares Check Cap and Hologic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Check Cap N/A -138.52% -102.52%
Hologic -4.15% 20.86% 7.51%

Summary

Hologic beats Check Cap on 9 of the 12 factors compared between the two stocks.

Check Cap Company Profile

Check-Cap Ltd., a clinical stage medical diagnostics company, engages in the development of an ingestible imaging capsule that utilizes low-dose X-rays for screening of the colon to detect polyps, masses, and colorectal cancers. Its C-Scan system consists of C-Scan Cap, an X-ray scanning capsule, which is designed to measure, collect, and transmit structural information; C-Scan Track, a biocompatible unit that is designed to track the capsule and record imaging and positioning data; and C-Scan View, a personal computer-based software package, which is designed to retrieve and process clinical data from the C-Scan Track, and to reconstruct and produce 3D visualization of the colon's inner surface. The company was founded in 2004 and is based in Isfiya, Israel.

Hologic Company Profile

Hologic, Inc. develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women in the United States, Europe, the Asia-Pacific, and internationally. The company operates through five segments: Diagnostics, Breast Health, Medical Aesthetics, GYN Surgical, and Skeletal Health. It offers Aptima family of assays, target capture/nucleic acid extraction technology, transcription-mediated amplification technology, hybridization protection and dual kinetic assay technologies, instrumentation, Invader chemistry platform, ThinPrep system, and rapid fetal fibronectin test products. It also provides breast imaging and related products, and accessories comprising digital and film-based mammography systems; computer-aided detection for mammography; minimally invasive breast biopsy devices; breast biopsy site markers; and breast biopsy guidance systems. In addition, it offers Dimensions platform, a mammography gantry for 2D and tomosynthesis image acquisition and display; C-View and Intelligent 2D, a software product that provides 2D images; Selenia digital mammography platform; and SecurView Workstation. Further, it provides SculpSure, MonaLisa Touch, Vectus diode, and Cellulaze laser devices; PicoSure and Icon aesthetic systems; MedLite, RevLite, Cynergy, Elite, and SmartLipo products; and system components. Additionally, it offers NovaSure system to treat women suffering from abnormal uterine bleeding; MyoSure system for the hysteroscopic removal of fibroids; discovery and horizon X-ray bone densitometers that assess the bone density of fracture sites; and mini C-arm imaging systems to perform minimally invasive surgical procedures on a patient's extremities, such as the hand, wrist, knee, foot, and ankle. The company sells its products through direct sales and service forces, and a network of independent distributors and sales representatives. Hologic, Inc. was founded in 1985 and is headquartered in Marlborough, Massachusetts.

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