Delcath Systems (NASDAQ:DCTH – Get Free Report) and Inspire Medical Systems (NYSE:INSP – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
Valuation & Earnings
This table compares Delcath Systems and Inspire Medical Systems’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Delcath Systems | $2.07 million | 111.56 | -$47.68 million | ($2.65) | -3.14 |
| Inspire Medical Systems | $624.80 million | 6.63 | -$21.15 million | ($0.55) | -253.45 |
Inspire Medical Systems has higher revenue and earnings than Delcath Systems. Inspire Medical Systems is trading at a lower price-to-earnings ratio than Delcath Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Delcath Systems | 0 | 0 | 5 | 0 | 3.00 |
| Inspire Medical Systems | 0 | 5 | 11 | 0 | 2.69 |
Delcath Systems presently has a consensus target price of $20.20, suggesting a potential upside of 143.08%. Inspire Medical Systems has a consensus target price of $251.20, suggesting a potential upside of 80.20%. Given Delcath Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Delcath Systems is more favorable than Inspire Medical Systems.
Risk & Volatility
Delcath Systems has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.
Profitability
This table compares Delcath Systems and Inspire Medical Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Delcath Systems | -1,080.72% | -290.07% | -111.05% |
| Inspire Medical Systems | -2.38% | -2.82% | -2.40% |
Insider & Institutional Ownership
61.1% of Delcath Systems shares are owned by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are owned by institutional investors. 17.9% of Delcath Systems shares are owned by insiders. Comparatively, 4.1% of Inspire Medical Systems shares are owned by insiders. 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
Inspire Medical Systems beats Delcath Systems on 9 of the 14 factors compared between the two stocks.
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.
About Inspire Medical Systems
Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and internationally. The company offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA. It also develops a novel, closed-loop solution that continuously monitors a patient's breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The company was incorporated in 2007 and is headquartered in Golden Valley, Minnesota.
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