Tactile Systems Technology (NASDAQ:TCMD – Get Free Report) and Check-Cap (NASDAQ:MBAI – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.
Institutional and Insider Ownership
83.4% of Tactile Systems Technology shares are owned by institutional investors. Comparatively, 1.1% of Check-Cap shares are owned by institutional investors. 2.1% of Tactile Systems Technology shares are owned by insiders. Comparatively, 0.5% of Check-Cap shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
Tactile Systems Technology has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Check-Cap has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Tactile Systems Technology | 7.10% | 11.62% | 9.26% |
| Check-Cap | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Tactile Systems Technology and Check-Cap, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tactile Systems Technology | 0 | 2 | 4 | 0 | 2.67 |
| Check-Cap | 1 | 0 | 0 | 0 | 1.00 |
Tactile Systems Technology currently has a consensus price target of $38.40, indicating a potential upside of 56.67%. Given Tactile Systems Technology’s stronger consensus rating and higher possible upside, research analysts clearly believe Tactile Systems Technology is more favorable than Check-Cap.
Valuation and Earnings
This table compares Tactile Systems Technology and Check-Cap”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tactile Systems Technology | $329.52 million | 1.68 | $19.09 million | $1.08 | 22.69 |
| Check-Cap | N/A | N/A | $4.14 million | ($2.01) | -0.63 |
Tactile Systems Technology has higher revenue and earnings than Check-Cap. Check-Cap is trading at a lower price-to-earnings ratio than Tactile Systems Technology, indicating that it is currently the more affordable of the two stocks.
Summary
Tactile Systems Technology beats Check-Cap on 13 of the 13 factors compared between the two stocks.
About Tactile Systems Technology
Tactile Systems Technology, Inc., a medical technology company, develops and provides medical devices to treat underserved chronic diseases in the United States. It offers Flexitouch Plus system, a pneumatic compression device for the treatment of lymphedema in the home setting; and Entre Plus System, a portable pneumatic compression device for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers. The company also provides Kylee, a mobile application to help patients learn about lymphedema, track their symptoms, and treatment, as well as to share their progress with their doctor; and AffloVest, a portable high frequency chest wall oscillation vest to treat patients with retained pulmonary secretions resulting from bronchiectasis, cystic fibrosis, and various neuromuscular disorders. Tactile Systems Technology, Inc. was incorporated in 1995 and is headquartered in Minneapolis, Minnesota.
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.
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