Duolingo (NASDAQ:DUOL – Get Free Report) and ANSYS (NASDAQ:ANSS – Get Free Report) are both large-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.
Risk & Volatility
Duolingo has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, ANSYS has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Duolingo and ANSYS, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Duolingo | 0 | 5 | 7 | 1 | 2.69 |
| ANSYS | 1 | 4 | 1 | 0 | 2.00 |
Valuation & Earnings
This table compares Duolingo and ANSYS”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Duolingo | $689.46 million | 23.08 | $16.07 million | $1.83 | 197.72 |
| ANSYS | $2.47 billion | 12.04 | $500.41 million | $6.48 | 52.42 |
ANSYS has higher revenue and earnings than Duolingo. ANSYS is trading at a lower price-to-earnings ratio than Duolingo, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
91.6% of Duolingo shares are held by institutional investors. Comparatively, 92.4% of ANSYS shares are held by institutional investors. 18.3% of Duolingo shares are held by company insiders. Comparatively, 0.5% of ANSYS shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Duolingo and ANSYS’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% |
| ANSYS | 23.01% | 12.64% | 9.55% |
Summary
ANSYS beats Duolingo 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 ANSYS
ANSYS, Inc. develops and markets engineering simulation software and services for engineers, designers, researchers, and students in the United States, Japan, Germany, China, Hong Kong, South Korea, rest of Europe, the Middle East, Africa, and internationally. It offers structural analysis product suite that provides simulation tools for product design and optimization; the Ansys Mechanical product, an element analysis software; LS-DYNA solver for multiphysics simulation; and power analysis and optimization software suite. The company also offers electronics product suite that provides electromagnetic field simulation software for designing electronic and electromechanical products; Ansys High Frequency Structure Simulator product for radio frequency and microwave design; SCADE product suite, a solution for embedded software simulation, code production, and automated certification; fluids product suite that enables modeling of fluid flow and other related physical phenomena; Ansys Fluent computational fluid dynamics software package; Ansys RedHawk-SC for electronic design automation; Ansys Optics software; and mission-simulation, modeling, testing, and analysis software. In addition, it offers Ansys Granta MI system for materials information management; Ansys Granta Selector technology for materials selection and graphical analysis; CES EduPack product, a set of teaching resources; Granta Materials Data for Simulation; Ansys Lumerical product, a photonics simulation software solution; safety-certified embedded software solutions; Discovery product family for use in the simulation of product design; academic product suite for research and teaching settings. ANSYS, Inc. was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.
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