Critical Analysis: Delcath Systems (DCTHD) and Rewalk Robotics (RWLK)

Rewalk Robotics (NASDAQ: RWLK) and Delcath Systems (OTCMKTS:DCTHD) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Rewalk Robotics and Delcath Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rewalk Robotics 1 0 4 0 2.60
Delcath Systems 0 0 0 0 N/A

Rewalk Robotics currently has a consensus target price of $3.10, indicating a potential upside of 181.82%. Given Rewalk Robotics’ higher probable upside, equities research analysts clearly believe Rewalk Robotics is more favorable than Delcath Systems.

Profitability

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

Net Margins Return on Equity Return on Assets
Rewalk Robotics -346.14% -568.25% -90.30%
Delcath Systems -1,278.64% -3,960.73% -165.16%

Institutional & Insider Ownership

3.2% of Rewalk Robotics shares are owned by institutional investors. 13.7% of Rewalk Robotics shares are owned by company insiders. Comparatively, 0.0% of Delcath Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Rewalk Robotics and Delcath Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rewalk Robotics $5.87 million 5.42 -$32.50 million ($1.59) -0.69
Delcath Systems $1.99 million 0.12 -$17.97 million ($1,377.67) 0.00

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

Risk and Volatility

Rewalk Robotics has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Delcath Systems has a beta of -0.61, suggesting that its stock price is 161% less volatile than the S&P 500.

Summary

Rewalk Robotics beats Delcath Systems on 11 of the 13 factors compared between the two stocks.

About Rewalk Robotics

ReWalk Robotics Ltd. is a medical device company. The Company is engaged in designing, developing and commercializing exoskeletons that allow individuals with mobility impairments or other medical conditions the ability to stand and walk once again. The Company offers ReWalk, which is an exoskeleton that uses its tilt-sensor technology and an on-board computer and motion sensors to drive motorized legs that power movement. ReWalk designs are intended for people with paraplegia, a spinal cord injury resulting in complete or incomplete paralysis of the legs, having the use of their upper bodies and arms. The Company offers two ReWalk products: ReWalk Personal and ReWalk Rehabilitation. ReWalk Personal is designed for everyday use by paraplegic individuals at home and in their communities, and is custom fitted for each user. ReWalk Rehabilitation is designed for use by paraplegia patients in the clinical rehabilitation environment, where it provides exercise and therapy.

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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