ADTRAN (NASDAQ:ADTN – Get Free Report) and Nexalin Technology (NASDAQ:NXL – Get 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 risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Valuation and Earnings
This table compares ADTRAN and Nexalin Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ADTRAN | $922.72 million | 0.86 | -$459.89 million | ($1.07) | -9.21 |
| Nexalin Technology | $170,000.00 | 56.49 | -$7.61 million | ($0.66) | -0.78 |
Profitability
This table compares ADTRAN and Nexalin Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ADTRAN | -8.44% | -4.63% | -0.56% |
| Nexalin Technology | -5,527.39% | -207.46% | -184.51% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for ADTRAN and Nexalin Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ADTRAN | 1 | 1 | 3 | 0 | 2.40 |
| Nexalin Technology | 1 | 0 | 1 | 0 | 2.00 |
ADTRAN currently has a consensus price target of $13.00, suggesting a potential upside of 31.85%. Nexalin Technology has a consensus price target of $5.00, suggesting a potential upside of 871.06%. Given Nexalin Technology’s higher probable upside, analysts clearly believe Nexalin Technology is more favorable than ADTRAN.
Risk and Volatility
ADTRAN has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Nexalin Technology has a beta of 3.95, meaning that its share price is 295% more volatile than the S&P 500.
Institutional & Insider Ownership
80.6% of ADTRAN shares are held by institutional investors. Comparatively, 0.7% of Nexalin Technology shares are held by institutional investors. 1.5% of ADTRAN shares are held by insiders. Comparatively, 25.3% of Nexalin Technology shares are held by 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.
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.
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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