AxoGen (NASDAQ:AXGN) and Nexalin Technology (NASDAQ:NXL) Critical Contrast

AxoGen (NASDAQ:AXGN) and Nexalin Technology (NASDAQ:NXL) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Valuation & Earnings

This table compares AxoGen and Nexalin Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AxoGen	$159.01 million	3.50	-$21.72 million	($0.32)	-39.50
Nexalin Technology	$162,078.00	334.89	-$4.65 million	($0.64)	-6.59

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

Insider & Institutional Ownership

80.3% of AxoGen shares are owned by institutional investors. Comparatively, 0.6% of Nexalin Technology shares are owned by institutional investors. 7.0% of AxoGen shares are owned by company insiders. Comparatively, 24.0% of Nexalin Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

AxoGen has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Nexalin Technology has a beta of 3.5, suggesting that its share price is 250% more volatile than the S&P 500.

Profitability

This table compares AxoGen and Nexalin Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AxoGen	-7.91%	-14.91%	-7.49%
Nexalin Technology	-3,407.98%	-187.59%	-167.21%

Analyst Ratings

This is a summary of recent ratings and target prices for AxoGen and Nexalin Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AxoGen	0	0	4	0	3.00
Nexalin Technology	0	0	1	0	3.00

AxoGen currently has a consensus price target of $15.00, indicating a potential upside of 18.67%. Nexalin Technology has a consensus price target of $3.00, indicating a potential downside of 28.91%. Given AxoGen’s higher possible upside, analysts plainly believe AxoGen is more favorable than Nexalin Technology.

Summary

AxoGen beats Nexalin Technology on 8 of the 13 factors compared between the two stocks.

About AxoGen

AxoGen, Inc., together with its subsidiaries, develops and commercializes technologies for peripheral nerve regeneration and repair worldwide. The company’s products include Avance Nerve Graft, a biologically active off-the-shelf processed human nerve allograft for bridging severed peripheral nerves without the comorbidities associated with a second surgical site; AxoGuard Nerve Connector, a porcine submucosa extracellular matrix (ECM) coaptation aid for tensionless repair of severed peripheral nerves; AxoGuard Nerve Protector, a porcine submucosa ECM product that is used to wrap and protect damaged peripheral nerves, as well as reinforces the nerve reconstruction while preventing soft tissue attachments; and Axoguard HA+ Nerve Protector, a processed porcine submucosa ECM base layer with a hyaluronate-alginate gel coating designed to provide short- and long-term protection for peripheral nerve injuries. Its products also comprise Axoguard Nerve Cap, a porcine submucosa ECM product that is used to protect a peripheral nerve end, as well as separates the nerve from the surrounding environment to reduce the development of symptomatic or painful neuroma; and AxoTouch two-point discriminator, a tool that is used for measuring the innervation density of surface area of the skin. The company provides its products to hospitals, surgery centers, and military hospitals, plastic reconstructive surgeons, orthopedic and plastic hand surgeons, and various oral and maxillofacial surgeons. AxoGen, Inc. is headquartered in Alachua, Florida.

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.