Nexalin Technology (NASDAQ:NXL – Get Free Report) and ADTRAN (NASDAQ:ADTN – Get Free Report) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.
Profitability
This table compares Nexalin Technology and ADTRAN’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nexalin Technology | -5,527.39% | -207.46% | -184.51% |
| ADTRAN | -8.44% | -4.63% | -0.56% |
Institutional and Insider Ownership
0.7% of Nexalin Technology shares are owned by institutional investors. Comparatively, 80.6% of ADTRAN shares are owned by institutional investors. 25.3% of Nexalin Technology shares are owned by company insiders. Comparatively, 1.5% of ADTRAN shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexalin Technology | 1 | 0 | 1 | 0 | 2.00 |
| ADTRAN | 1 | 1 | 3 | 0 | 2.40 |
Nexalin Technology presently has a consensus target price of $5.00, indicating a potential upside of 706.45%. ADTRAN has a consensus target price of $13.00, indicating a potential upside of 38.45%. Given Nexalin Technology’s higher probable upside, research analysts plainly believe Nexalin Technology is more favorable than ADTRAN.
Valuation and Earnings
This table compares Nexalin Technology and ADTRAN”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexalin Technology | $170,000.00 | 68.02 | -$7.61 million | ($0.66) | -0.94 |
| ADTRAN | $922.72 million | 0.82 | -$459.89 million | ($1.07) | -8.78 |
Nexalin Technology has higher earnings, but lower revenue than ADTRAN. ADTRAN is trading at a lower price-to-earnings ratio than Nexalin Technology, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Nexalin Technology has a beta of 3.95, indicating that its stock price is 295% more volatile than the S&P 500. Comparatively, ADTRAN has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
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 ADTRAN
ADTRAN Holdings, Inc., through its subsidiaries, provides networking and communications platforms, software, systems, and services in the United States, Germany, the United Kingdom, and internationally. It operates through two segments, Network Solutions, and Services & Support. It offers residential gateways; ethernet passive optical network ONUs; gigabit passive optical network/XGS-PON ONTs; traditional SSE, routers, and switches; edge cloud; carrier ethernet network interface devices; Optical Line Terminals; Packet Aggregation, Copper Access, and Oscilloquartz; optical transport and engine solutions; infrastructure monitoring solution; and training, professional, software, and managed services. The company also provides various software, such as Mosaic One SaaS, n-Command, Procloud, MCP, AOE and ACI-E, and Ensemble Controller. It serves large, medium, and small service providers; alternative service providers, such as utilities, municipalities and fiber overbuilders; cable/MSOs; and SMBs and distributed enterprises. ADTRAN Holdings, Inc. was incorporated in 1985 and is headquartered in Huntsville, Alabama.
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