Critical Survey: InMode (NASDAQ:INMD) & Nexalin Technology (NASDAQ:NXL)

Nexalin Technology (NASDAQ:NXLGet Free Report) and InMode (NASDAQ:INMDGet Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

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%

Earnings & Valuation

This table compares Nexalin Technology and InMode”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexalin Technology $162,078.00 213.42 -$4.65 million ($0.64) -4.06
InMode $492.05 million 2.95 $197.92 million $1.85 9.33

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 and Volatility

Nexalin Technology has a beta of 4.24, meaning that its stock price is 324% more volatile than the S&P 500. Comparatively, InMode has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings 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 price target of $3.00, indicating a potential upside of 15.38%. InMode has a consensus price target of $22.40, indicating a potential upside of 29.78%. Given InMode’s stronger consensus rating and higher possible upside, analysts clearly believe InMode is more favorable than Nexalin Technology.

Insider and Institutional Ownership

0.6% of Nexalin Technology shares are owned by institutional investors. Comparatively, 68.0% of InMode shares are owned by institutional investors. 24.0% of Nexalin Technology shares are owned by company insiders. Comparatively, 6.9% of InMode shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

InMode beats Nexalin Technology on 11 of the 14 factors compared between the two stocks.

About Nexalin Technology

(Get Free Report)

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

(Get Free Report)

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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