Comparing Laureate Education (NASDAQ:LAUR) and Duolingo (NASDAQ:DUOL)
by Tristan Rich · The Markets DailyDuolingo (NASDAQ:DUOL – Get Free Report) and Laureate Education (NASDAQ:LAUR – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Valuation and Earnings
This table compares Duolingo and Laureate Education”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Duolingo | $1.04 billion | 6.47 | $414.07 million | $8.44 | 17.00 |
| Laureate Education | $1.70 billion | 3.03 | $281.63 million | $2.23 | 16.77 |
Duolingo has higher earnings, but lower revenue than Laureate Education. Laureate Education is trading at a lower price-to-earnings ratio than Duolingo, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Duolingo and Laureate Education’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Duolingo | 35.88% | 12.10% | 8.24% |
| Laureate Education | 17.57% | 23.54% | 11.72% |
Risk and Volatility
Duolingo has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Laureate Education has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.
Insider and Institutional Ownership
91.6% of Duolingo shares are owned by institutional investors. Comparatively, 96.3% of Laureate Education shares are owned by institutional investors. 16.6% of Duolingo shares are owned by insiders. Comparatively, 1.5% of Laureate Education shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Duolingo and Laureate Education, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Duolingo | 1 | 14 | 8 | 1 | 2.38 |
| Laureate Education | 1 | 2 | 3 | 1 | 2.57 |
Duolingo currently has a consensus price target of $124.38, suggesting a potential downside of 13.33%. Laureate Education has a consensus price target of $40.50, suggesting a potential upside of 8.29%. Given Laureate Education’s stronger consensus rating and higher probable upside, analysts clearly believe Laureate Education is more favorable than Duolingo.
Summary
Duolingo beats Laureate Education on 8 of the 14 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 Laureate Education
Laureate Education, Inc., together with its subsidiaries, offers higher education programs and services to students through a network of universities and higher education institutions. The company provides a range of undergraduate and graduate degree programs in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. It also offers specialized courses for technical and vocational training; and senior high school. Its services are provides in Mexico, Peru, and the United States. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. Laureate Education, Inc. was founded in 1989 and is headquartered in Miami, Florida.