Check-Cap (NASDAQ:MBAI) vs. Retractable Technologies (NYSE:RVP) Critical Contrast

Retractable Technologies (NYSE:RVP) and Check-Cap (NASDAQ:MBAI) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Retractable Technologies	-41.11%	-17.15%	-9.33%
Check-Cap	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and target prices for Retractable Technologies and Check-Cap, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Retractable Technologies	0	0	0	0	0.00
Check-Cap	1	0	0	0	1.00

Insider & Institutional Ownership

7.6% of Retractable Technologies shares are owned by institutional investors. Comparatively, 1.1% of Check-Cap shares are owned by institutional investors. 59.5% of Retractable Technologies shares are owned by insiders. Comparatively, 0.5% of Check-Cap shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Retractable Technologies 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
Retractable Technologies	$37.15 million	0.56	-$7.01 million	($0.21)	-3.30
Check-Cap	N/A	N/A	$4.14 million	($2.01)	-4.34

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

Volatility & Risk

Retractable Technologies has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Check-Cap has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Summary

Retractable Technologies beats Check-Cap on 6 of the 11 factors compared between the two stocks.

About Retractable Technologies

Retractable Technologies, Inc. designs, develops, manufactures, and markets safety syringes and other safety medical products for the healthcare profession in the United States, rest of North and South America, and internationally. The company offers VanishPoint insulin syringes; tuberculin, insulin, and allergy antigen syringes; small diameter tube adapters; blood collection tube holders; allergy trays; IV safety catheters; Patient Safe syringes and Luer Caps; VanishPoint blood collection sets; EasyPoint needles; and VanishPoint autodisable syringes. It distributes its products through general line and specialty distributor; international distributors; and a direct marketing network. Retractable Technologies, Inc. was incorporated in 1994 and is headquartered in Little Elm, Texas.

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.