Comparing Glaukos (NYSE:GKOS) and Delcath Systems (NASDAQ:DCTH)

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

Volatility and Risk

Glaukos has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Delcath Systems has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Glaukos and Delcath Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glaukos	2	1	12	1	2.75
Delcath Systems	1	0	5	0	2.67

Glaukos currently has a consensus target price of $133.69, suggesting a potential upside of 14.79%. Delcath Systems has a consensus target price of $22.50, suggesting a potential upside of 131.96%. Given Delcath Systems’ higher probable upside, analysts clearly believe Delcath Systems is more favorable than Glaukos.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glaukos	$507.44 million	13.33	-$187.69 million	($3.26)	-35.72
Delcath Systems	$85.23 million	3.95	$2.70 million	$0.07	138.57

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

Institutional and Insider Ownership

99.0% of Glaukos shares are held by institutional investors. Comparatively, 61.1% of Delcath Systems shares are held by institutional investors. 5.8% of Glaukos shares are held by company insiders. Comparatively, 17.4% of Delcath Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Glaukos	-36.99%	-7.00%	-5.38%
Delcath Systems	3.17%	2.63%	2.39%

Summary

Delcath Systems beats Glaukos on 8 of the 15 factors compared between the two stocks.

About Glaukos

Glaukos Corporation, an ophthalmic pharmaceutical and medical technology company, focuses on the development of novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. It offers iStent and iStent inject W micro-bypass stents that enhance aqueous humor outflow inserted in cataract surgery to treat mild-to-moderate open-angle glaucoma. The company's product pipeline includes iStent Infinite indicated for use in the treatment of patients with glaucoma uncontrolled by prior medical and surgical therapy; and iDose TR, an intracameral procedural pharmaceutical therapy indicated for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The company markets its products through direct sales organization, as well as through distributors in the United States and internationally. Glaukos Corporation was incorporated in 1998 and is headquartered in Aliso Viejo, California.

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.