Critical Survey: Vapotherm (NYSE:VAPO) versus Delcath Systems (NASDAQ:DCTH)

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

Profitability

This table compares Vapotherm and Delcath Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vapotherm	-84.74%	N/A	-65.84%
Delcath Systems	-2,308.86%	-563.60%	-111.13%

Volatility & Risk

Vapotherm has a beta of -1.11, meaning that its stock price is 211% less volatile than the S&P 500. Comparatively, Delcath Systems has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Vapotherm and Delcath Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vapotherm	0	0	0	0	N/A
Delcath Systems	0	0	4	0	3.00

Delcath Systems has a consensus price target of $18.50, indicating a potential upside of 289.47%. Given Delcath Systems’ higher probable upside, analysts clearly believe Delcath Systems is more favorable than Vapotherm.

Institutional and Insider Ownership

43.1% of Vapotherm shares are held by institutional investors. Comparatively, 61.1% of Delcath Systems shares are held by institutional investors. 15.8% of Vapotherm shares are held by insiders. Comparatively, 21.1% of Delcath Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Vapotherm and Delcath Systems’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vapotherm	$68.67 million	0.13	-$58.19 million	($9.90)	-0.14
Delcath Systems	$2.07 million	57.76	-$47.68 million	($2.97)	-1.58

Delcath Systems has lower revenue, but higher earnings than Vapotherm. Delcath Systems is trading at a lower price-to-earnings ratio than Vapotherm, indicating that it is currently the more affordable of the two stocks.

Summary

Delcath Systems beats Vapotherm on 8 of the 12 factors compared between the two stocks.

About Vapotherm

Vapotherm, Inc., a medical technology company, focuses on the development and commercialization of proprietary high velocity therapy products used to treat patients of various ages suffering from respiratory distress in the United States and internationally. The company offers High Velocity Therapy systems, such as HVT 2.0, Precision Flow Hi-VNI, Precision Flow Plus, and Precision Flow Classic which delivers non-invasive ventilatory support to patients by providing heated, humidified, and oxygenated air at a high velocity to treat patients through a small-bore nasal interface. It also provides companion products, including Vapotherm Transfer Unit, which allows patients to be transferred between care areas within the hospital or ambulate while on therapy; Q50 compressor that provides compressed air necessary to run the precision flow systems in areas of the hospital without access to a wall gas source; aerosol aeroneb adaptor to facilitate delivery of aerosolized solutions; aerosol disposable patient circuit that is designed to streamline the provision of continuous and intermittent delivery of aerosol solutions for patients; and tracheostomy adaptors that simplifies the connection of the High Velocity Therapy systems to a tracheostomy collar used to wean patients off mechanical ventilation. In addition, the company offers ProSoft cannula to provide gentle contact with the skin; and disposable products comprising single-use disposables and nasal interfaces, as well as Oxygen Assist Module, which helps clinicians maintain oxygen levels within a target range. Vapotherm, Inc. was founded in 1993 and is headquartered in Exeter, New Hampshire.

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.