WallStSmart

Duolingo Inc (DUOL)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 28865% more annual revenue ($318.27B vs $1.10B). MSFT leads profitability with a 39.3% profit margin vs 38.4%. DUOL trades at a lower P/E of 13.0x. MSFT earns a higher WallStSmart Score of 72/100 (B).

DUOL

Buy

65

out of 100

Grade: C+

Growth: 8.7Profit: 8.5Value: 7.7Quality: 6.5
Piotroski: 3/9Altman Z: 1.20

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DUOLUndervalued (+56.4%)

Margin of Safety

+56.4%

Fair Value

$250.90

Current Price

$107.99

$142.91 discount

UndervaluedFair: $250.90Overvalued
MSFTSignificantly Overvalued (-72.4%)

Margin of Safety

-72.4%

Fair Value

$240.84

Current Price

$415.12

$174.28 premium

UndervaluedFair: $240.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DUOL6 strengths · Avg: 9.0/10
Return on EquityProfitability
37.0%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
38.4%10/10

Keeps 38 of every $100 in revenue as profit

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
26.5%8/10

Revenue surging 26.5% year-over-year

EPS GrowthGrowth
23.6%8/10

Earnings expanding 23.6% YoY

MSFT6 strengths · Avg: 9.7/10
Market CapQuality
$3.13T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.0%10/10

Every $100 of equity generates 34 in profit

Profit MarginProfitability
39.3%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Free Cash FlowQuality
$15.80B10/10

Generating 15.8B in free cash flow

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

Areas to Watch

DUOL2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.202/10

Distress zone — elevated risk

MSFT1 concerns · Avg: 4.0/10
P/E RatioValuation
25.0x4/10

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : DUOL

The strongest argument for DUOL centers on Return on Equity, Profit Margin, Debt/Equity. Profitability is solid with margins at 38.4% and operating margin at 15.4%. Revenue growth of 26.5% demonstrates continued momentum.

Bull Case : MSFT

The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.

Bear Case : DUOL

The primary concerns for DUOL are Piotroski F-Score, Altman Z-Score.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Key Dynamics to Monitor

MSFT carries more volatility with a beta of 1.09 — expect wider price swings.

DUOL is growing revenue faster at 26.5% — sustainability is the question.

MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MSFT scores higher overall (72/100 vs 65/100), backed by strong 39.3% margins and 18.3% revenue growth. DUOL offers better value entry with a 56.4% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Duolingo Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Duolingo Inc (DUOL) is a prominent player in the education technology landscape, recognized for its innovative language-learning platform that has successfully engaged over 500 million users globally through a freemium model augmented by gamification strategies. Established in 2011, Duolingo distinguishes itself with a robust focus on AI-driven personalized learning solutions, fostering user acquisition and retention across more than 30 languages. With a mission to make education accessible and a strong user-centric design, Duolingo is well-positioned to capitalize on the growing demand for digital learning solutions, presenting a compelling opportunity for institutional investors looking to invest in the evolving edtech sector.

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Microsoft Corporation

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.

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