Critical Survey: Delcath Systems (NASDAQ:DCTH) versus Vaso (OTCMKTS:VASO)

Vaso (OTCMKTS:VASO) and Delcath Systems (NASDAQ:DCTH) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vaso	-0.35%	-1.14%	-0.38%
Delcath Systems	3.18%	6.91%	5.80%

Volatility and Risk

Vaso has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Delcath Systems has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Institutional and Insider Ownership

61.1% of Delcath Systems shares are held by institutional investors. 44.5% of Vaso shares are held by insiders. Comparatively, 17.9% of Delcath Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Vaso and Delcath Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vaso	$86.77 million	0.24	$950,000.00	($0.01)	-12.02
Delcath Systems	$37.21 million	10.90	-$26.39 million	$0.05	232.00

Vaso has higher revenue and earnings than Delcath Systems. Vaso 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 Ratings

This is a breakdown of recent ratings and price targets for Vaso and Delcath Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vaso	0	0	0	0	0.00
Delcath Systems	0	0	4	0	3.00

Delcath Systems has a consensus target price of $24.50, indicating a potential upside of 111.21%. Given Delcath Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Delcath Systems is more favorable than Vaso.

Summary

Delcath Systems beats Vaso on 10 of the 14 factors compared between the two stocks.

About Vaso

Vaso Corporation, together with its subsidiaries, operates in the healthcare equipment and information technology industries in the United States and internationally. The company operates through three segments: IT, Professional Sales Service, and Equipment. The IT segment primarily focuses on healthcare IT and managed network technology services. This segment offers managed diagnostic imaging applications, managed network infrastructure, managed network transport, and managed network security services. The Professional Sales Service segment principally focuses on the sale of healthcare capital equipment for General Electric Healthcare (GEHC) into the health provider middle market. Its offerings include GEHC diagnostic imaging equipment and ultrasound systems, GEHC service agreements, GEHC training, and GEHC and third-party financial services. The Equipment segment primarily focuses on the design, manufacture, sale, and service of proprietary medical devices and software. This segment offers Biox series Holter monitors and ambulatory blood pressure recorders; ARCS series analysis, reporting, and communication software for ECG and blood pressure signals, including cloud-based software and algorithm subscription services; MobiCare multi-parameter wireless vital-sign monitoring systems; and Enhanced External Counterpulsation therapy systems for non-invasive and outpatient treatment of ischemic heart disease. The company was formerly known as Vasomedical, Inc. and changed its name to Vaso Corporation in November 2016. Vaso Corporation was incorporated in 1987 and is headquartered in Plainview, New York.

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.