Duolingo (NASDAQ:DUOL) & Workiva (NYSE:WK) Head-To-Head Analysis

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

Risk & Volatility

Workiva has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Duolingo has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Workiva	$705.44 million	8.55	-$127.53 million	($0.92)	-118.34
Duolingo	$689.46 million	20.79	$16.07 million	$1.83	178.08

Duolingo has lower revenue, but higher earnings 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.

Insider & Institutional Ownership

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

Analyst Recommendations

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

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

Workiva presently has a consensus target price of $117.40, indicating a potential upside of 7.84%. Duolingo has a consensus target price of $353.90, indicating a potential upside of 8.60%. Given Duolingo’s higher possible upside, analysts plainly believe Duolingo is more favorable than Workiva.

Summary

Duolingo beats Workiva on 10 of the 14 factors compared between the two stocks.

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.

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.