Critical Analysis: Nexalin Technology (NXL) & Its Peers

Nexalin Technology (NASDAQ:NXL) is one of 76 public companies in the “Electromedical equipment” industry, but how does it weigh in compared to its competitors? We will compare Nexalin Technology to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, institutional ownership, dividends and earnings.

Profitability

This table compares Nexalin Technology and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nexalin Technology	-3,088.12%	-154.84%	-122.94%
Nexalin Technology Competitors	-152.14%	-47.46%	-5.34%

Risk and Volatility

Nexalin Technology has a beta of 5.56, indicating that its share price is 456% more volatile than the S&P 500. Comparatively, Nexalin Technology’s competitors have a beta of 12.63, indicating that their average share price is 1,163% more volatile than the S&P 500.

Institutional and Insider Ownership

0.7% of Nexalin Technology shares are owned by institutional investors. Comparatively, 45.1% of shares of all “Electromedical equipment” companies are owned by institutional investors. 27.7% of Nexalin Technology shares are owned by company insiders. Comparatively, 15.2% of shares of all “Electromedical equipment” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Nexalin Technology and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexalin Technology	0	0	0	0	N/A
Nexalin Technology Competitors	254	771	2038	101	2.63

As a group, “Electromedical equipment” companies have a potential upside of 28.32%. Given Nexalin Technology’s competitors higher probable upside, analysts plainly believe Nexalin Technology has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Nexalin Technology and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nexalin Technology	$110,000.00	-$4.65 million	-2.12
Nexalin Technology Competitors	$966.77 million	$78.60 million	-8.53

Nexalin Technology’s competitors have higher revenue and earnings than Nexalin Technology. Nexalin Technology is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Nexalin Technology competitors beat Nexalin Technology on 8 of the 10 factors compared.

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.