Duolingo (NYSE:DUOL) & Silverlake Axis (OTCMKTS:SLVFF) Financial Analysis

Duolingo (NYSE:DUOL) and Silverlake Axis (OTCMKTS:SLVFF) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Duolingo and Silverlake Axis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duolingo	0	5	3	0	2.38
Silverlake Axis	0	0	0	0	N/A

Duolingo presently has a consensus target price of $144.38, suggesting a potential downside of 9.50%. Given Duolingo’s higher probable upside, analysts clearly believe Duolingo is more favorable than Silverlake Axis.

Earnings and Valuation

This table compares Duolingo and Silverlake Axis’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duolingo	$442.39 million	14.98	-$59.57 million	($0.79)	-201.94
Silverlake Axis	N/A	N/A	N/A	$0.11	1.53

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

Profitability

This table compares Duolingo and Silverlake Axis’ net margins, return on equity and return on assets.

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

Institutional and Insider Ownership

76.9% of Duolingo shares are owned by institutional investors. Comparatively, 14.6% of Silverlake Axis shares are owned by institutional investors. 19.9% of Duolingo shares are owned by 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.

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 Silverlake Axis

Silverlake Axis Ltd., an investment holding company, provides software solutions and services. It operates through Software Licensing, Software Project Services, Maintenance and Enhancement Services, Sale of Software and Hardware Products, Insurance Ecosystem Transaction and Services, Retail Transactions Processing, and Others segments. The company offers digital economy solutions in banking, retail, government, payment, and logistics industries; software customization and implementation services; round-the-clock software maintenance support and software enhancement services; cloud computing Software-as-a-Service; and Software-as-a-Service subscription, as well as provides software and hardware products. It operates in South East Asia, North East Asia, South Asia, the Middle East, the Americas, Africa, and Europe. The company was founded in 1989 and is headquartered in Petaling Jaya, Malaysia. Silverlake Axis Ltd. is a subsidiary of Zezz FundQ Pte. Ltd.