Head-To-Head Analysis: Nexalin Technology (NASDAQ:NXL) vs. Yext (NYSE:YEXT)

Yext (NYSE:YEXT) and Nexalin Technology (NASDAQ:NXL) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Volatility and Risk

Yext has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Nexalin Technology has a beta of 3.63, meaning that its stock price is 263% more volatile than the S&P 500.

Insider and Institutional Ownership

71.0% of Yext shares are held by institutional investors. Comparatively, 0.7% of Nexalin Technology shares are held by institutional investors. 5.2% of Yext shares are held by insiders. Comparatively, 25.3% of Nexalin Technology shares are held by 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 Yext and Nexalin Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yext	1.66%	4.90%	1.27%
Nexalin Technology	-5,527.39%	-207.46%	-184.51%

Analyst Recommendations

This is a summary of recent ratings for Yext and Nexalin Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yext	1	2	3	0	2.33
Nexalin Technology	1	0	1	0	2.00

Yext presently has a consensus target price of $9.44, suggesting a potential upside of 13.91%. Nexalin Technology has a consensus target price of $5.00, suggesting a potential upside of 371.70%. Given Nexalin Technology’s higher probable upside, analysts clearly believe Nexalin Technology is more favorable than Yext.

Valuation & Earnings

This table compares Yext and Nexalin Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yext	$420.96 million	2.43	-$27.95 million	($0.12)	-69.04
Nexalin Technology	$170,000.00	116.29	-$7.61 million	($0.66)	-1.61

Nexalin Technology has lower revenue, but higher earnings than Yext. Yext is trading at a lower price-to-earnings ratio than Nexalin Technology, indicating that it is currently the more affordable of the two stocks.

Summary

Yext beats Nexalin Technology on 8 of the 13 factors compared between the two stocks.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.

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.