Nexalin Technology (NASDAQ:NXL – Get Free Report) and InMode (NASDAQ:INMD – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
Earnings and Valuation
This table compares Nexalin Technology and InMode”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexalin Technology | $110,000.00 | 328.87 | -$4.65 million | ($0.64) | -4.25 |
| InMode | $492.05 million | 2.94 | $197.92 million | $1.85 | 9.32 |
InMode has higher revenue and earnings than Nexalin Technology. Nexalin Technology is trading at a lower price-to-earnings ratio than InMode, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Profitability
This table compares Nexalin Technology and InMode’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nexalin Technology | -3,407.98% | -187.59% | -167.21% |
| InMode | 36.26% | 21.46% | 19.19% |
Insider & Institutional Ownership
0.7% of Nexalin Technology shares are held by institutional investors. Comparatively, 68.0% of InMode shares are held by institutional investors. 24.0% of Nexalin Technology shares are held by insiders. Comparatively, 6.9% of InMode shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Nexalin Technology and InMode, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexalin Technology | 0 | 1 | 0 | 0 | 2.00 |
| InMode | 0 | 4 | 2 | 0 | 2.33 |
Nexalin Technology currently has a consensus target price of $3.00, indicating a potential upside of 10.29%. InMode has a consensus target price of $22.40, indicating a potential upside of 29.86%. Given InMode’s stronger consensus rating and higher possible upside, analysts clearly believe InMode is more favorable than Nexalin Technology.
Summary
InMode beats Nexalin Technology on 11 of the 14 factors compared between the two stocks.
About Nexalin Technology
Nexalin Technology, Inc., a medical device company, designs and develops neurostimulation products for the treatment of mental health in the United States and China. The company designs and develops Generation 2 and Generation 3, that is in clinical trials for the treatment of substance abuse issues related to opiate, cocaine, alcohol abuse, alzheimer's disease, and dementia. It also licenses and sells Nexalin Device, a non-invasive and undetectable to the human body that can provide relief to its afflicted with mental health issues. The company is based in Houston, Texas.
About InMode
InMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women's health conditions and procedures. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions, as well as hands-free medical aesthetic products that target a range of procedures, such as skin tightening, fat reduction, and muscle stimulation. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.
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