Wright Medical Group (NASDAQ: WMGI) and Delcath Systems (OTCMKTS:DCTHD) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
This table compares Wright Medical Group and Delcath Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wright Medical Group||-38.40%||-6.27%||-1.71%|
Wright Medical Group has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Delcath Systems has a beta of -0.59, indicating that its share price is 159% less volatile than the S&P 500.
This is a summary of current ratings and price targets for Wright Medical Group and Delcath Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wright Medical Group||0||4||8||0||2.67|
Wright Medical Group currently has a consensus price target of $32.22, indicating a potential upside of 39.25%. Given Wright Medical Group’s higher probable upside, research analysts plainly believe Wright Medical Group is more favorable than Delcath Systems.
Earnings and Valuation
This table compares Wright Medical Group and Delcath Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wright Medical Group||$690.36 million||3.52||-$432.37 million||($4.74)||-4.88|
|Delcath Systems||$1.99 million||0.12||-$17.97 million||($1,377.67)||0.00|
Delcath Systems has lower revenue, but higher earnings than Wright Medical Group. Wright Medical Group is trading at a lower price-to-earnings ratio than Delcath Systems, indicating that it is currently the more affordable of the two stocks.
Wright Medical Group beats Delcath Systems on 9 of the 10 factors compared between the two stocks.
About Wright Medical Group
Wright Medical Group, Inc. is a global specialty orthopaedic company. The Company through Wright Medical Technology, Inc. (WMT) and other subsidiaries provides extremity and biologic solutions that enable clinicians to alleviate pain and restore the patients’ lifestyles. The Company operates through three segments: U.S., International and BioMimetic. The Company’s business includes products that are used in foot and ankle repair, upper extremity products and biologics products, which are used to replace damaged or diseased bone, to stimulate bone growth and to provide other biological solutions for surgeons and patients. The Company’s products include extremity hardware, foot and ankle hardware, upper extremity hardware and biologics.
About Delcath Systems
Delcath Systems, Inc. is a late-stage clinical development company with early commercial activity in Europe focused on cancers of the liver. The Company is a specialty pharmaceutical and medical device company developing its product, Melphalan Hydrochloride for Injection for use with the Delcath Hepatic Delivery System (Melphalan/HDS). The Company’s system delivers and filters melphalan hydrochloride, which is marketed as a device under the trade name Delcath Hepatic CHEMOSAT Delivery System for Melphalan (CHEMOSAT). The Company’s focus is on the execution of the clinical development program (CDP) in ocular melanoma liver metastases (mOM), intrahepatic cholangiocarncinoma (ICC), hepatocellular carcinoma (HCC or primary liver) and other cancers that are metastatic to the liver.
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