Delcath Systems (NASDAQ:DCTH – Get Free Report) and West Pharmaceutical Services (NYSE:WST – Get Free Report) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Institutional and Insider Ownership
61.1% of Delcath Systems shares are owned by institutional investors. Comparatively, 93.9% of West Pharmaceutical Services shares are owned by institutional investors. 17.9% of Delcath Systems shares are owned by company insiders. Comparatively, 0.5% of West Pharmaceutical Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Delcath Systems has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, West Pharmaceutical Services has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Delcath Systems | 0 | 0 | 4 | 0 | 3.00 |
| West Pharmaceutical Services | 0 | 1 | 6 | 0 | 2.86 |
Delcath Systems presently has a consensus target price of $22.75, indicating a potential upside of 78.71%. West Pharmaceutical Services has a consensus target price of $332.50, indicating a potential upside of 48.47%. Given Delcath Systems’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Delcath Systems is more favorable than West Pharmaceutical Services.
Profitability
This table compares Delcath Systems and West Pharmaceutical Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Delcath Systems | -150.70% | -338.16% | -104.02% |
| West Pharmaceutical Services | 17.03% | 18.60% | 13.80% |
Earnings and Valuation
This table compares Delcath Systems and West Pharmaceutical Services”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Delcath Systems | $37.21 million | 11.43 | -$47.68 million | ($0.98) | -12.99 |
| West Pharmaceutical Services | $2.89 billion | 5.60 | $492.70 million | $6.69 | 33.47 |
West Pharmaceutical Services has higher revenue and earnings than Delcath Systems. Delcath Systems is trading at a lower price-to-earnings ratio than West Pharmaceutical Services, indicating that it is currently the more affordable of the two stocks.
Summary
West Pharmaceutical Services beats Delcath Systems on 10 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 West Pharmaceutical Services
West Pharmaceutical Services, Inc. designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers stoppers and seals for injectable packaging systems; syringe and cartridge components, including custom solutions for the needs of injectable drug applications, as well as administration systems that enhance the safe delivery of drugs through advanced reconstitution, mixing, and transfer technologies; and films, coatings, washing, and vision inspection and sterilization processes and services to enhance the quality of packaging components. This segment also provides drug containment solutions, including Crystal Zenith, a cyclic olefin polymer in the form of vials, syringes, and cartridges; and self-injection devices; and a range of integrated solutions, including analytical lab services, pre-approval primary packaging support and engineering development, regulatory expertise, and after-sales technical support. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. The company serves pharmaceutical, diagnostic, and medical device companies. It sells and distributes its products through its sales force and distribution network, contract sales agents, and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.
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