Duolingo (NASDAQ:DUOL – Get Free Report) and Coursera (NYSE:COUR – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Insider & Institutional Ownership
91.6% of Duolingo shares are owned by institutional investors. Comparatively, 89.5% of Coursera shares are owned by institutional investors. 16.6% of Duolingo shares are owned by company insiders. Comparatively, 16.3% of Coursera shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Duolingo and Coursera, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Duolingo | 1 | 14 | 8 | 1 | 2.38 |
| Coursera | 1 | 4 | 7 | 0 | 2.50 |
Volatility & Risk
Duolingo has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Coursera has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.
Profitability
This table compares Duolingo and Coursera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Duolingo | 35.88% | 12.10% | 8.24% |
| Coursera | -15.39% | -1.72% | -1.07% |
Valuation and Earnings
This table compares Duolingo and Coursera”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Duolingo | $1.04 billion | 6.63 | $414.07 million | $8.44 | 17.43 |
| Coursera | $757.50 million | 1.79 | -$51.00 million | ($0.67) | -7.66 |
Duolingo has higher revenue and earnings than Coursera. Coursera is trading at a lower price-to-earnings ratio than Duolingo, indicating that it is currently the more affordable of the two stocks.
Summary
Duolingo beats Coursera on 12 of the 15 factors compared between the two stocks.
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.
About Coursera
Coursera, Inc. operates an online educational content platform in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally. It operates in three segments: Consumer, Enterprise, and Degrees. The company offers guided projects, courses, and specializations, as well as online degrees; and certificates for entry-level professional, non-entry level professional, university, and MasterTrack. It offers its products to individuals, enterprise, business, campus, and government. The company was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. Coursera, Inc. was incorporated in 2011 and is headquartered in Mountain View, California.
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