TerrAscend (OTCMKTS:TSNDF – Get Free Report) and Delcath Systems (NASDAQ:DCTH – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
Insider and Institutional Ownership
5.8% of TerrAscend shares are held by institutional investors. Comparatively, 61.1% of Delcath Systems shares are held by institutional investors. 31.9% of TerrAscend shares are held by company insiders. Comparatively, 19.4% 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.
Volatility & Risk
TerrAscend 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 0.57, indicating that its share price is 43% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TerrAscend | 0 | 1 | 0 | 1 | 3.00 |
| Delcath Systems | 1 | 0 | 5 | 1 | 2.86 |
Delcath Systems has a consensus target price of $23.17, indicating a potential upside of 45.61%. Given Delcath Systems’ higher possible upside, analysts plainly believe Delcath Systems is more favorable than TerrAscend.
Valuation & Earnings
This table compares TerrAscend and Delcath Systems”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TerrAscend | $260.56 million | 0.75 | -$81.33 million | ($0.11) | -5.73 |
| Delcath Systems | $85.23 million | 6.48 | $2.70 million | $0.01 | 1,591.00 |
Delcath Systems has lower revenue, but higher earnings than TerrAscend. TerrAscend is trading at a lower price-to-earnings ratio than Delcath Systems, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TerrAscend and Delcath Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TerrAscend | -31.01% | -32.93% | -5.49% |
| Delcath Systems | 0.56% | 0.46% | 0.42% |
Summary
Delcath Systems beats TerrAscend on 10 of the 14 factors compared between the two stocks.
About TerrAscend
TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.
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.
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