Duolingo Inc (DUOL)vsMicrosoft Corporation (MSFT)
DUOL
Duolingo Inc
$119.94
-0.11%
TECHNOLOGY · Cap: $5.83B
MSFT
Microsoft Corporation
$372.97
+5.71%
TECHNOLOGY · Cap: $2.77T
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 14.3x. MSFT earns a higher WallStSmart Score of 72/100 (B).
DUOL
Buy65
out of 100
Grade: C+
MSFT
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.5%
Fair Value
$257.05
Current Price
$119.94
$137.11 discount
Margin of Safety
-74.9%
Fair Value
$213.30
Current Price
$372.97
$159.67 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 30 in profit
Keeps 38 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Revenue surging 26.5% year-over-year
Earnings expanding 23.6% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 30 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 46.3%
Generating 15.8B in free cash flow
Conservative balance sheet, low leverage
Areas to Watch
Weak financial health signals
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bear Case : MSFT
No major red flags identified for MSFT, but monitor valuation.
Key Dynamics to Monitor
MSFT carries more volatility with a beta of 1.10 — 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 57.5% 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 pioneering leader in the edtech industry, celebrated for its innovative language-learning platform that has attracted more than 500 million users worldwide through an effective freemium model and enticing gamification strategies. Founded in 2011, the company employs sophisticated AI-driven personalized learning to optimize user engagement and retention across a broad spectrum of over 30 languages. With a strong commitment to making education universally accessible, Duolingo is well-positioned to capitalize on the burgeoning digital learning market, presenting compelling growth opportunities for institutional investors looking to invest in the future of educational technology.
Visit Website →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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