Reviewing Koninklijke Philips (NYSE:PHG) and Check-Cap (NASDAQ:CHEK)

Check-Cap (NASDAQ:CHEK) and Koninklijke Philips (NYSE:PHG) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for Check-Cap and Koninklijke Philips, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Check-Cap 0 1 1 0 2.50
Koninklijke Philips 1 1 6 0 2.63

Check-Cap currently has a consensus target price of $3.00, indicating a potential upside of 78.57%. Given Check-Cap’s higher probable upside, research analysts plainly believe Check-Cap is more favorable than Koninklijke Philips.

Earnings and Valuation

This table compares Check-Cap and Koninklijke Philips’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Check-Cap N/A N/A -$13.85 million ($0.08) -21.00
Koninklijke Philips $22.31 billion 2.31 $1.36 billion $2.26 25.23

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

Volatility & Risk

Check-Cap has a beta of -0.33, suggesting that its share price is 133% less volatile than the S&P 500. Comparatively, Koninklijke Philips has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares Check-Cap and Koninklijke Philips’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Check-Cap N/A -114.33% -98.40%
Koninklijke Philips 6.20% 18.12% 7.52%

Insider and Institutional Ownership

1.5% of Check-Cap shares are held by institutional investors. Comparatively, 8.4% of Koninklijke Philips shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Koninklijke Philips beats Check-Cap on 11 of the 12 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 system that utilizes 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, which is designed to measure, collect, and transmit structural information; C-Scan Track, a disposable system attached to the patient's back via 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 founded in 2004 and is based in Isfiya, Israel.

About Koninklijke Philips

Koninklijke Philips N.V. operates as a health technology company in North America, Greater China, and internationally. It operates through Diagnosis & Treatment, Connected Care, and Personal Health segments. It provides magnetic resonance imaging, computed tomography, advanced molecular imaging, diagnostic X-ray, and imaging components as well as integrated clinical solutions; integrated interventional systems, including interventional diagnostic and therapeutic devices; imaging products focused on diagnosis, treatment planning and guidance for cardiology, general imaging, obstetrics/gynecology, and point-of-care applications; proprietary software to enable diagnostics and intervention; and enterprise diagnostic informatics products and services. The company also offers monitoring and analytics solutions; sleep and respiratory care solutions; emergency care and resuscitation, and patient management solutions; data, analytics, and actionable workflow solutions; and connected care informatics solutions. In addition, it provides power toothbrushes, brush heads, and interdental cleaning and teeth whitening products; infant feeding and digital parental solutions; male grooming and beauty products and solutions; and kitchen appliances, home care, and garment care products, as well as coffee machines. Koninklijke Philips N.V. has a partnership with openDoctor to deliver an integrated radiology patient engagement platform that leverages openDoctor's real-time online appointment scheduling services as part of its patient management solution; and a strategic collaboration with Ibex Medical Analytics Ltd. to jointly promote the digital pathology and AI solutions to hospitals, health networks, and pathology laboratories worldwide. The company was formerly known as Koninklijke Philips Electronics N.V. and changed its name to Koninklijke Philips N.V. in May 2013. Koninklijke Philips N.V. was founded in 1891 and is headquartered in Amsterdam, the Netherlands.

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