Head-To-Head Contrast: Hologic (HOLX) versus Check Cap (CHEK)

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hologic $3.06 billion 3.50 $755.50 million $2.03 19.05
Check Cap N/A N/A -$9.77 million ($6.42) -1.95

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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Hologic and Check Cap, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hologic 0 4 9 0 2.69
Check Cap 0 0 2 0 3.00

Hologic currently has a consensus target price of $47.54, indicating a potential upside of 22.93%. Check Cap has a consensus target price of $66.00, indicating a potential upside of 425.90%. Given Check Cap’s stronger consensus rating and higher probable upside, analysts clearly believe Check Cap is more favorable than Hologic.

Insider & Institutional Ownership

97.4% of Hologic shares are held by institutional investors. 0.9% of Hologic shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Hologic 34.53% 20.07% 7.11%
Check Cap N/A -137.96% -103.53%

Risk and Volatility

Hologic has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Check Cap has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500.

Summary

Hologic beats Check Cap on 11 of the 13 factors compared between the two stocks.

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.

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.

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