Tactile Systems Technology (NASDAQ:TCMD) & Check-Cap (NASDAQ:MBAI) Head-To-Head Survey

Tactile Systems Technology (NASDAQ:TCMD) and Check-Cap (NASDAQ:MBAI) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares Tactile Systems Technology and Check-Cap’s net margins, return on equity and return on assets.

	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

Earnings and Valuation

This table compares Tactile Systems Technology and Check-Cap”s 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.

Volatility & Risk

Tactile Systems Technology has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Check-Cap has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Tactile Systems Technology and Check-Cap, as provided by MarketBeat.com.

	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 presently has a consensus target price of $38.40, suggesting a potential upside of 56.67%. Given Tactile Systems Technology’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Tactile Systems Technology is more favorable than Check-Cap.

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, endowments and hedge funds believe a stock will outperform the market over the long term.

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.