Duolingo (NASDAQ:DUOL) & Snowflake (NYSE:SNOW) Head to Head Review

Snowflake (NYSE:SNOW) and Duolingo (NASDAQ:DUOL) are both large-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Snowflake	-33.02%	-24.23%	-13.30%
Duolingo	12.59%	11.74%	7.92%

Analyst Ratings

This is a summary of recent ratings and target prices for Snowflake and Duolingo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snowflake	1	10	27	0	2.68
Duolingo	0	6	6	1	2.62

Snowflake currently has a consensus price target of $183.89, indicating a potential upside of 9.67%. Duolingo has a consensus price target of $352.40, indicating a potential upside of 4.24%. Given Snowflake’s stronger consensus rating and higher possible upside, analysts plainly believe Snowflake is more favorable than Duolingo.

Insider & Institutional Ownership

65.1% of Snowflake shares are owned by institutional investors. Comparatively, 91.6% of Duolingo shares are owned by institutional investors. 7.8% of Snowflake shares are owned by company insiders. Comparatively, 18.3% of Duolingo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snowflake	$3.41 billion	16.21	-$836.10 million	($3.39)	-49.46
Duolingo	$689.46 million	21.57	$16.07 million	$1.83	184.74

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

Volatility and Risk

Snowflake has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Duolingo has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Summary

Duolingo beats Snowflake on 10 of the 15 factors compared between the two stocks.

About Snowflake

Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products, as well as applies artificial intelligence (AI) for solving business problems. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana.

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.