Critical Survey: Delcath Systems (NASDAQ:DCTH) versus Stevanato Group (NYSE:STVN)

Stevanato Group (NYSE:STVN) and Delcath Systems (NASDAQ:DCTH) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Valuation & Earnings

This table compares Stevanato Group and Delcath Systems’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stevanato Group	$1.17 billion	N/A	$157.62 million	€0.59 ($0.63)	46.68
Delcath Systems	$2.07 million	65.14	-$47.68 million	($2.97)	-1.78

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

Insider & Institutional Ownership

61.1% of Delcath Systems shares are owned by institutional investors. 0.7% of Stevanato Group shares are owned by insiders. Comparatively, 17.9% of Delcath Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stevanato Group	13.43%	14.31%	8.18%
Delcath Systems	-2,308.86%	-563.60%	-111.13%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Stevanato Group and Delcath Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stevanato Group	0	2	5	0	2.71
Delcath Systems	0	0	4	0	3.00

Delcath Systems has a consensus target price of $18.50, indicating a potential upside of 249.06%. Given Delcath Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Delcath Systems is more favorable than Stevanato Group.

Volatility & Risk

Stevanato Group has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Delcath Systems has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Summary

Stevanato Group beats Delcath Systems on 9 of the 13 factors compared between the two stocks.

About Stevanato Group

Stevanato Group S.p.A. engages in the design, production, and distribution of products and processes to provide integrated solutions for bio-pharma and healthcare industries in Europe, the Middle East, Africa, North America, South America, and the Asia Pacific. The company operates in two segments, Biopharmaceutical and Diagnostic Solutions; and Engineering. Its principal products include containment solutions, drug delivery systems, medical devices, diagnostic, analytical services, visual inspection machines, assembling and packaging machines, and glass forming machines. The company was founded in 1949 and is headquartered in Piombino Dese, Italy. Stevanato Group S.p.A. is a subsidiary of Stevanato Holding S.R.L.

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.