InMode (NASDAQ:INMD – Get Free Report) and Nexalin Technology (NASDAQ:NXL – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Analyst Ratings
This is a summary of current ratings and recommmendations for InMode and Nexalin Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| InMode | 0 | 4 | 2 | 0 | 2.33 |
| Nexalin Technology | 0 | 1 | 0 | 0 | 2.00 |
InMode presently has a consensus target price of $22.40, suggesting a potential upside of 28.66%. Nexalin Technology has a consensus target price of $3.00, suggesting a potential upside of 15.38%. Given InMode’s stronger consensus rating and higher probable upside, research analysts plainly believe InMode is more favorable than Nexalin Technology.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| InMode | 36.26% | 21.46% | 19.19% |
| Nexalin Technology | -3,407.98% | -187.59% | -167.21% |
Risk and Volatility
InMode has a beta of 2.12, suggesting that its stock price is 112% more volatile than the S&P 500. Comparatively, Nexalin Technology has a beta of 4.24, suggesting that its stock price is 324% more volatile than the S&P 500.
Institutional and Insider Ownership
68.0% of InMode shares are held by institutional investors. Comparatively, 0.7% of Nexalin Technology shares are held by institutional investors. 6.9% of InMode shares are held by insiders. Comparatively, 24.0% of Nexalin Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares InMode and Nexalin Technology”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| InMode | $492.05 million | 2.97 | $197.92 million | $1.85 | 9.41 |
| Nexalin Technology | $110,000.00 | 314.36 | -$4.65 million | ($0.64) | -4.06 |
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.
Summary
InMode beats Nexalin Technology on 11 of the 14 factors compared between the two stocks.
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.
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.
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