Check-Cap (NASDAQ:CHEK – Get Free Report) and OrthoPediatrics (NASDAQ:KIDS – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Profitability
This table compares Check-Cap and OrthoPediatrics’ 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 |
| OrthoPediatrics | -20.06% | -6.85% | -5.00% |
Earnings and Valuation
This table compares Check-Cap and OrthoPediatrics”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) | -0.63 |
| OrthoPediatrics | $227.41 million | 1.87 | -$37.82 million | ($1.95) | -8.71 |
Check-Cap has higher earnings, but lower revenue than OrthoPediatrics. OrthoPediatrics is trading at a lower price-to-earnings ratio than Check-Cap, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Check-Cap and OrthoPediatrics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Check-Cap | 1 | 0 | 0 | 0 | 1.00 |
| OrthoPediatrics | 1 | 1 | 7 | 0 | 2.67 |
OrthoPediatrics has a consensus price target of $24.00, indicating a potential upside of 41.26%. Given OrthoPediatrics’ stronger consensus rating and higher probable upside, analysts clearly believe OrthoPediatrics is more favorable than Check-Cap.
Risk & Volatility
Check-Cap has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, OrthoPediatrics has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
Institutional & Insider Ownership
1.1% of Check-Cap shares are held by institutional investors. Comparatively, 69.1% of OrthoPediatrics shares are held by institutional investors. 0.5% of Check-Cap shares are held by insiders. Comparatively, 31.8% of OrthoPediatrics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
OrthoPediatrics beats Check-Cap on 8 of the 13 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. Check-Cap Ltd. was incorporated in 2004 and is based in Isfiya, Israel.
About OrthoPediatrics
OrthoPediatrics Corp., a medical device company, engages in designing, developing, and marketing anatomically appropriate implants, instruments, and specialized braces for children with orthopedic conditions in the United States and internationally. The company offers pediatric trauma and deformity correction products; scoliosis procedures for the treatment of spinal deformity; and sports medicine and other products. Its products comprise PediLoc, PediPlates, cannulated screws, PediFlex nail, PediNail, PediLoc Tibia, ACL Reconstruction System, Locking Cannulated Blade, Locking Proximal Femur, Spica Tables, RESPONSE Spine, BandLoc, Pediguard, Pediatric Nailing Platform | Femur, Devise Rail, Orthex, The Fassier-Duval Telescopic Intramedullary System, SLIMTM Nail, The GAP Nail, The Free Gliding SCFE Screw System, GIROTM Growth Modulation System, PNP Tibia System, ApiFix Mid-C System, and Mitchell Ponseti. The company serves pediatric orthopedic market, as well as pediatric orthopedic surgeons and caregivers. OrthoPediatrics Corp. was founded in 2006 and is headquartered in Warsaw, Indiana.
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