Contrasting Duolingo (NASDAQ:DUOL) and T Stamp (NASDAQ:IDAI)

Duolingo (NASDAQ:DUOL) and T Stamp (NASDAQ:IDAI) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Insider and Institutional Ownership

91.6% of Duolingo shares are held by institutional investors. Comparatively, 16.3% of T Stamp shares are held by institutional investors. 18.3% of Duolingo shares are held by company insiders. Comparatively, 3.5% of T Stamp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Duolingo has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, T Stamp has a beta of -0.67, suggesting that its share price is 167% less volatile than the S&P 500.

Earnings & Valuation

This table compares Duolingo and T Stamp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duolingo	$531.11 million	15.63	$16.07 million	$0.97	198.53
T Stamp	$4.56 million	1.01	-$7.64 million	($0.94)	-0.46

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

Profitability

This table compares Duolingo and T Stamp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duolingo	7.82%	7.08%	4.89%
T Stamp	-166.15%	-236.03%	-102.67%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Duolingo and T Stamp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duolingo	1	3	7	0	2.55
T Stamp	0	0	0	0	N/A

Duolingo currently has a consensus price target of $246.70, indicating a potential upside of 28.11%. Given Duolingo’s higher probable upside, analysts clearly believe Duolingo is more favorable than T Stamp.

Summary

Duolingo beats T Stamp on 13 of the 13 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 T Stamp

T Stamp Inc. develops and markets identity authentication software solutions for government and enterprise partners, and peer-to-peer markets worldwide. It develops proprietary artificial intelligence-powered solutions, researching and leveraging machine learning, artificial intelligence, biometric science, cryptography, and data mining to deliver insightful identity and trust predictions that identify and defend against fraudulent identity attacks, protect sensitive user information, and extend the reach of digital services through global accessibility. It uses the Irreversibly Transformed Identity Token technology combined with a data architecture that can use one or multiple sources of biometric or other identifying data. The company also offers solutions for privacy and data protection, biometric multi-factor authentication, document validation, identity verification, geolocation, duplicate detection, age estimation, and biometric capture, as well as crypto security and compliance, and trusted message. It serves banking/fintech; humanitarian and development services; cryptocurrency and digital assets; biometrically secured email and digital communication; KYC/AML compliance; government and law enforcement; P2P transactions, social media, and sharing economy; and real estate, travel, and healthcare industries. T Stamp Inc. was incorporated in 2016 and is headquartered in Atlanta, Georgia.