Analyzing Nemetschek (OTCMKTS:NEMTF) and Duolingo (NYSE:DUOL)

Duolingo (NYSE:DUOL) and Nemetschek (OTCMKTS:NEMTF) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Duolingo and Nemetschek, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duolingo	0	5	3	0	2.38
Nemetschek	1	0	2	0	2.33

Duolingo currently has a consensus price target of $144.38, suggesting a potential downside of 7.75%. Nemetschek has a consensus price target of $98.00, suggesting a potential upside of 31.54%. Given Nemetschek’s higher possible upside, analysts clearly believe Nemetschek is more favorable than Duolingo.

Valuation and Earnings

This table compares Duolingo and Nemetschek’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duolingo	$442.39 million	14.70	-$59.57 million	($0.79)	-198.11
Nemetschek	N/A	N/A	N/A	$3.08	24.19

Nemetschek has lower revenue, but higher earnings than Duolingo. Duolingo is trading at a lower price-to-earnings ratio than Nemetschek, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Duolingo and Nemetschek’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duolingo	-7.06%	-5.58%	-4.05%
Nemetschek	N/A	N/A	N/A

Insider and Institutional Ownership

76.9% of Duolingo shares are held by institutional investors. Comparatively, 21.8% of Nemetschek shares are held by institutional investors. 19.9% of Duolingo shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Nemetschek beats Duolingo on 6 of the 11 factors compared between the two stocks.

About Duolingo

Duolingo, Inc. operates as a mobile learning platform in the United States, China, 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 language proficiency assessment exam. The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania.

About Nemetschek

Nemetschek SE provides software solutions for architecture, engineering, construction, media, and entertainment markets in Germany, rest of Europe, the Americas, the Asia Pacific, and internationally. It operates through four segments: Design, Build, Manage, and Media. The Design segment offers software solutions primarily under the Allplan, Graphisoft, Solibri, Precast, Vectorworks, SCIA, dRofus, Data Design System, Frilo, and RISA brands for architects, designers, engineers, structural engineers, specialist planners, and landscape designers, as well as developers and general contractors. This segment provides building information modeling (BIM) solutions for computer aided design and computer aided engineering in 2D and 3D building design and imaging. The Build segment offers integrated complete 5D BIM solutions primarily under the Bluebeam brand that support bidding and awarding, invoicing, budgeting, scheduling, and cost calculation. This segment serves construction companies, developers, building supplies, and general contractors, as well as planning offices, architects, and civil engineers. The Manage segment provides solutions for building and infrastructure projects; facility management and professional property management; and offer modular and integrated software solutions for property, facility, and workplace management under the Spacewell brand. The Media segment offers software solutions under the Maxon name for rendering 3D modeling, animation, painting, and sculpting. This segment also includes film and television studio, advertising studios, video game production, freelancing, graphic designing, and other related activities. The company was founded in 1963 and is headquartered in Munich, Germany.