WallStSmart

Duolingo Inc (DUOL)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 33% more annual revenue ($1.46B vs $1.10B). DUOL leads profitability with a 38.4% profit margin vs 1.6%. DUOL trades at a lower P/E of 14.3x. DUOL earns a higher WallStSmart Score of 65/100 (C+).

DUOL

Buy

65

out of 100

Grade: C+

Growth: 8.7Profit: 8.5Value: 7.7Quality: 7.5
Piotroski: 2/9Altman Z: 2.81

SONO

Hold

45

out of 100

Grade: D+

Growth: 6.0Profit: 4.0Value: 3.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DUOLUndervalued (+57.5%)

Margin of Safety

+57.5%

Fair Value

$257.05

Current Price

$119.94

$137.11 discount

UndervaluedFair: $257.05Overvalued
SONOSignificantly Overvalued (-34.7%)

Margin of Safety

-34.7%

Fair Value

$12.25

Current Price

$13.76

$1.51 premium

UndervaluedFair: $12.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DUOL6 strengths · Avg: 9.0/10
Return on EquityProfitability
30.4%10/10

Every $100 of equity generates 30 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
14.3x8/10

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

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

Areas to Watch

DUOL1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

SONO4 concerns · Avg: 3.0/10
Market CapQuality
$1.68B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bear Case : DUOL

The primary concerns for DUOL are Piotroski F-Score.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 82.8x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

DUOL profiles as a growth stock while SONO is a value play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.94 — expect wider price swings.

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

DUOL generates stronger free cash flow (151M), providing more financial flexibility.

Bottom Line

DUOL scores higher overall (65/100 vs 45/100), backed by strong 38.4% margins and 26.5% revenue growth. Both earn "Buy" and "Hold" 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.

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Sonos Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.

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