STRATA Skin Sciences (NASDAQ:SSKN) vs. Delcath Systems (NASDAQ:DCTH) Critical Comparison

STRATA Skin Sciences (NASDAQ:SSKN) and Delcath Systems (NASDAQ:DCTH) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares STRATA Skin Sciences and Delcath Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
STRATA Skin Sciences	$33.36 million	0.39	-$10.83 million	($2.66)	-1.17
Delcath Systems	$2.07 million	151.82	-$47.68 million	($1.35)	-7.28

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.

Insider & Institutional 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

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.

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%

Analyst Recommendations

This is a breakdown of recent recommendations for STRATA Skin Sciences and Delcath Systems, as provided by MarketBeat.com.

	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 118.72%. Given Delcath Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Delcath Systems is more favorable than STRATA Skin Sciences.

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.