STRATA Skin Sciences (NASDAQ:SSKN – Get Free Report) and Delcath Systems (NASDAQ:DCTH – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
Institutional and Insider Ownership
32.4% of STRATA Skin Sciences shares are owned by institutional investors. Comparatively, 61.1% of Delcath Systems shares are owned by institutional investors. 39.0% of STRATA Skin Sciences shares are owned by company insiders. Comparatively, 17.9% of Delcath Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
STRATA Skin Sciences has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Delcath Systems has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| STRATA Skin Sciences | 0 | 0 | 0 | 0 | 0.00 |
| Delcath Systems | 0 | 0 | 4 | 0 | 3.00 |
Delcath Systems has a consensus target price of $21.50, indicating a potential upside of 120.29%. Given Delcath Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Delcath Systems is more favorable than STRATA Skin Sciences.
Earnings & Valuation
This table compares STRATA Skin Sciences and Delcath Systems”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| STRATA Skin Sciences | $33.36 million | 0.38 | -$10.83 million | ($2.66) | -1.15 |
| Delcath Systems | $22.64 million | 13.78 | -$47.68 million | ($1.35) | -7.23 |
STRATA Skin Sciences has higher revenue and earnings than Delcath Systems. Delcath Systems is trading at a lower price-to-earnings ratio than STRATA Skin Sciences, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares STRATA Skin Sciences and Delcath Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| STRATA Skin Sciences | -28.72% | -69.33% | -17.55% |
| Delcath Systems | -150.70% | -338.16% | -104.02% |
Summary
STRATA Skin Sciences beats Delcath Systems on 8 of the 14 factors compared between the two stocks.
About STRATA Skin Sciences
STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America. The company operates in two segments, Dermatology Recurring Procedures and Dermatology Procedures Equipment. The company products include XTRAC and Pharos excimer lasers, and VTRAC lamp systems for the treatment systems that are used for the treatment of psoriasis, vitiligo, and other skin conditions. It also offers TheraClear Acne Therapy System for the treatment of mild to moderate inflammatory, comedonal, and pustular acne. The company was formerly known as MELA Sciences, Inc and changed its name to STRATA Skin Sciences, Inc. in January 2016. STRATA Skin Sciences, Inc. was incorporated in 1989 and is based in Horsham, Pennsylvania.
About Delcath Systems
Delcath Systems, Inc., an interventional oncology company, focuses on the treatment of primary and metastatic liver cancers in the United States and Europe. The company’s lead product candidate is HEPZATO KIT, a melphalan for injection/hepatic delivery system to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects. Its clinical development program for HEPZATO is the FOCUS clinical trial for patients with metastatic hepatic dominant Uveal Melanoma to investigate objective response rate in metastatic uveal melanoma. It also provides HEPZATO as a stand-alone medical device under the CHEMOSAT Hepatic Delivery System trade name for Melphalan or CHEMOSAT for medical centers to treat a range of liver cancers in Europe. Delcath Systems, Inc. was incorporated in 1988 and is headquartered in New York, New York.
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