Head to Head Comparison: Duolingo (NASDAQ:DUOL) versus Workiva (NYSE:WK)

Duolingo (NASDAQ:DUOL) and Workiva (NYSE:WK) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Valuation & Earnings

This table compares Duolingo and Workiva”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duolingo	$689.46 million	21.48	$16.07 million	$1.83	184.00
Workiva	$705.44 million	8.83	-$127.53 million	($0.92)	-122.17

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

Risk and Volatility

Duolingo has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Workiva has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Duolingo and Workiva, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duolingo	0	6	6	1	2.62
Workiva	0	0	7	0	3.00

Duolingo presently has a consensus price target of $353.90, indicating a potential upside of 5.10%. Workiva has a consensus price target of $120.33, indicating a potential upside of 7.06%. Given Workiva’s stronger consensus rating and higher possible upside, analysts clearly believe Workiva is more favorable than Duolingo.

Insider and Institutional Ownership

91.6% of Duolingo shares are owned by institutional investors. Comparatively, 92.2% of Workiva shares are owned by institutional investors. 18.3% of Duolingo shares are owned by company insiders. Comparatively, 3.9% of Workiva shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Duolingo and Workiva’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duolingo	12.59%	11.74%	7.92%
Workiva	-7.15%	N/A	-3.58%

Summary

Duolingo beats Workiva on 9 of the 15 factors compared between the two stocks.

About Duolingo

Duolingo, Inc. operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam. Duolingo, Inc. was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania.

About Workiva

Workiva Inc., together with its subsidiaries, provides cloud-based reporting solutions in the United States and internationally. The company offers Workiva platform, a multi-tenant cloud software that provides data linking capabilities; audit trail services; administrators access management; and allows customers to connect data from multiple enterprise resource planning, human capital management, and customer relationship management systems, as well as other third-party cloud and on-premise applications. It serves public and private companies, government agencies, and higher-education institutions. Workiva Inc. was founded in 2008 and is headquartered in Ames, Iowa.