Critical Contrast: Gadsden Properties (OTCMKTS:GADS) & Nexalin Technology (NASDAQ:NXL)

Nexalin Technology (NASDAQ:NXL) and Gadsden Properties (OTCMKTS:GADS) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Nexalin Technology and Gadsden Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexalin Technology	$168,721.00	100.32	-$4.65 million	($0.83)	-1.53
Gadsden Properties	N/A	N/A	N/A	N/A	N/A

Gadsden Properties has lower revenue, but higher earnings than Nexalin Technology.

Institutional & Insider Ownership

0.6% of Nexalin Technology shares are owned by institutional investors. 24.0% of Nexalin Technology shares are owned by insiders. Comparatively, 5.0% of Gadsden Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Nexalin Technology and Gadsden Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexalin Technology	0	0	1	0	3.00
Gadsden Properties	0	0	0	0	0.00

Nexalin Technology presently has a consensus price target of $5.00, indicating a potential upside of 293.70%. Given Nexalin Technology’s stronger consensus rating and higher possible upside, research analysts plainly believe Nexalin Technology is more favorable than Gadsden Properties.

Volatility & Risk

Nexalin Technology has a beta of 4.67, meaning that its stock price is 367% more volatile than the S&P 500. Comparatively, Gadsden Properties has a beta of -7.54, meaning that its stock price is 854% less volatile than the S&P 500.

Profitability

This table compares Nexalin Technology and Gadsden Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nexalin Technology	-3,407.98%	-187.59%	-167.21%
Gadsden Properties	N/A	N/A	N/A

Summary

Nexalin Technology beats Gadsden Properties on 7 of the 10 factors compared between the two stocks.

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 Gadsden Properties

Gadsden Properties, Inc. is a Nevada corporation that was formed on December 28, 2010. Gadsden concentrates primarily on investments in high quality income-producing assets, residential developments and other opportunistic commercial properties in secondary and tertiary markets across the United States. The Company derives value from smaller, flexible retail investments that range from $5 million to $50 million and off-market mixed-use properties ranging from $50 million to $250 million. As a result of this chosen strategy, we believe that Gadsden is developing a unique competitive advantage that generally allows the Company to invest in markets and assets that are often overlooked by larger institutional investors, such as publicly-traded REITs and other large institutional investors. As part of its strategy, Gadsden attracts specific sellers that prefer the tax deferral advantages offered through issuing operating partnership units in exchange for their properties. These real estate assets are typically operated by independent owners that are seeking to monetize their real estate holdings, and who are typically not well capitalized or well-seasoned real estate operators. These transactions create a variety of outcomes for Gadsden and the sellers typically resulting in lease-up and value-added opportunities that may not be otherwise achieved.