WallStSmart

Duolingo Inc (DUOL)vsShopify Inc (SHOP)

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Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 1059% more annual revenue ($13.27B vs $1.15B). DUOL leads profitability with a 35.9% profit margin vs 14.5%. DUOL trades at a lower P/E of 16.8x. SHOP earns a higher WallStSmart Score of 64/100 (C+).

DUOL

Buy

53

out of 100

Grade: C-

Growth: 6.7Profit: 8.0Value: 7.7Quality: 7.5
Piotroski: 2/9Altman Z: 2.81

SHOP

Buy

64

out of 100

Grade: C+

Growth: 10.0Profit: 7.5Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 6.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DUOLUndervalued (+57.4%)

Margin of Safety

+57.4%

Fair Value

$256.65

Current Price

$143.51

$113.14 discount

UndervaluedFair: $256.65Overvalued
SHOPUndervalued (+23.5%)

Margin of Safety

+23.5%

Fair Value

$152.79

Current Price

$142.25

$10.54 discount

UndervaluedFair: $152.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DUOL5 strengths · Avg: 9.2/10
Return on EquityProfitability
30.4%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
35.9%10/10

Keeps 36 of every $100 in revenue as profit

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

P/E RatioValuation
16.8x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

SHOP5 strengths · Avg: 9.8/10
Revenue GrowthGrowth
33.7%10/10

Revenue surging 33.7% year-over-year

EPS GrowthGrowth
68.1%10/10

Earnings expanding 68.1% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.6110/10

Safe zone — low bankruptcy risk

Market CapQuality
$165.33B9/10

Large-cap with strong market position

Areas to Watch

DUOL2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-27.5%2/10

Earnings declined 27.5%

SHOP4 concerns · Avg: 3.3/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Price/BookValuation
14.5x4/10

Trading at 14.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
86.8x2/10

Premium valuation, high expectations priced in

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 35.9% and operating margin at 11.7%. Revenue growth of 18.3% demonstrates continued momentum.

Bull Case : SHOP

The strongest argument for SHOP centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 33.7% demonstrates continued momentum.

Bear Case : DUOL

The primary concerns for DUOL are Piotroski F-Score, EPS Growth.

Bear Case : SHOP

The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 86.8x leaves little room for execution misses.

Key Dynamics to Monitor

SHOP carries more volatility with a beta of 2.62 — expect wider price swings.

SHOP is growing revenue faster at 33.7% — sustainability is the question.

SHOP generates stronger free cash flow (654M), providing more financial flexibility.

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

Bottom Line

SHOP scores higher overall (64/100 vs 53/100) and 33.7% revenue growth. DUOL offers better value entry with a 57.4% margin of safety. Both earn "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 leading player in the edtech sector, renowned for its innovative language-learning platform that has successfully engaged over 500 million users globally through a unique freemium model augmented by gamification. Established in 2011, Duolingo utilizes advanced AI-driven personalized learning to enhance user experience and retention across more than 30 languages. The company's unwavering mission to provide accessible education aligns with the rapid expansion of the digital learning market, offering substantial growth potential for institutional investors seeking to tap into the future of educational technology.

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Shopify Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.

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