Financial Contrast: Retractable Technologies (NYSE:RVP) versus Check-Cap (NASDAQ:MBAI)

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

Volatility and Risk

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Check-Cap and Retractable Technologies, as reported by MarketBeat.com.

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

Institutional & Insider Ownership

1.1% of Check-Cap shares are held by institutional investors. Comparatively, 7.6% of Retractable Technologies shares are held by institutional investors. 0.5% of Check-Cap shares are held by company insiders. Comparatively, 59.5% of Retractable Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Check-Cap and Retractable Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Check-Cap	N/A	N/A	$4.14 million	($2.01)	-4.34
Retractable Technologies	$37.15 million	0.56	-$7.01 million	($0.21)	-3.30

Check-Cap has higher earnings, but lower revenue 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.

Profitability

This table compares Check-Cap and Retractable Technologies’ 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
Retractable Technologies	-41.11%	-17.15%	-9.33%

Summary

Retractable Technologies beats Check-Cap on 6 of the 11 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. The company was incorporated in 2004 and is based in Isfiya, Israel.

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.