Analyzing Nexalin Technology (NASDAQ:NXL) & Precision Optics (NASDAQ:POCI)

Precision Optics (NASDAQ:POCI) and Nexalin Technology (NASDAQ:NXL) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

13.7% of Precision Optics shares are owned by institutional investors. Comparatively, 0.7% of Nexalin Technology shares are owned by institutional investors. 16.3% of Precision Optics shares are owned by company insiders. Comparatively, 27.7% of Nexalin Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Precision Optics and Nexalin Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Precision Optics	-8.93%	-21.74%	-13.02%
Nexalin Technology	-4,185.46%	-122.57%	-97.00%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Precision Optics and Nexalin Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precision Optics	0	0	0	0	N/A
Nexalin Technology	0	0	0	0	N/A

Valuation and Earnings

This table compares Precision Optics 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
Precision Optics	$21.05 million	1.59	-$140,000.00	($0.30)	-18.37
Nexalin Technology	$110,000.00	89.28	-$4.65 million	N/A	N/A

Precision Optics has higher revenue and earnings than Nexalin Technology.

Volatility & Risk

Precision Optics has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, Nexalin Technology has a beta of 6.34, indicating that its share price is 534% more volatile than the S&P 500.

Summary

Precision Optics beats Nexalin Technology on 6 of the 9 factors compared between the two stocks.

About Precision Optics

Precision Optics Corporation, Inc. designs, develops, manufactures, and sells specialized optical and illumination systems and related components primarily in the United States and the European Economic Area. It offers medical instrumentation products, including endoscopes and endocouplers, as well as other custom imaging and illumination products, such as Microprecision lenses and micro medical cameras, and 3D endoscopes for use in minimally invasive surgical procedures by hospitals and physicians. The company also provides components and assemblies for industrial and military use. It markets its products to medical device companies. The company was incorporated in 1982 and is based in Gardner, Massachusetts.

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. It licenses and markets Nexalin Device, a non-invasive and drug-free therapy for the treatment of anxiety and insomnia. The company's Nexalin device emits a patented frequency-based waveform, which stimulates a positive response from the mid-brain structures associated with various mental health disorders. In addition, it designs and develops Generation 2 and Generation 3, a medical device that is in clinical trials for the treatment of substance abuse issues related to opiate, cocaine, alcohol abuse, Alzheimer's disease, and dementia. The company is based in Houston, Texas.