Duolingo (NASDAQ:DUOL – Get Free Report) and Nexalin Technology (NASDAQ:NXL – Get Free Report) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Analyst Ratings
This is a summary of current ratings and target prices for Duolingo and Nexalin Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Duolingo | 1 | 11 | 12 | 0 | 2.46 |
| Nexalin Technology | 1 | 0 | 1 | 0 | 2.00 |
Duolingo currently has a consensus price target of $311.00, indicating a potential upside of 69.44%. Nexalin Technology has a consensus price target of $5.00, indicating a potential upside of 576.59%. Given Nexalin Technology’s higher possible upside, analysts clearly believe Nexalin Technology is more favorable than Duolingo.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Duolingo | $748.02 million | 11.34 | $88.57 million | $7.89 | 23.26 |
| Nexalin Technology | $170,000.00 | 81.07 | -$7.61 million | ($0.66) | -1.12 |
Duolingo has higher revenue and earnings than Nexalin Technology. Nexalin Technology is trading at a lower price-to-earnings ratio than Duolingo, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
91.6% of Duolingo shares are held by institutional investors. Comparatively, 0.7% of Nexalin Technology shares are held by institutional investors. 18.3% of Duolingo shares are held by insiders. Comparatively, 25.3% of Nexalin Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Duolingo and Nexalin Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Duolingo | 40.03% | 14.02% | 9.15% |
| Nexalin Technology | -5,527.39% | -207.46% | -184.51% |
Volatility and Risk
Duolingo has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Nexalin Technology has a beta of 3.94, suggesting that its share price is 294% more volatile than the S&P 500.
Summary
Duolingo beats Nexalin Technology on 10 of the 14 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 Nexalin Technology
Nexalin Technology, Inc., a medical device company, designs and develops neurostimulation products for the treatment of mental health in the United States and China. The company designs and develops Generation 2 and Generation 3, that is in clinical trials for the treatment of substance abuse issues related to opiate, cocaine, alcohol abuse, alzheimer's disease, and dementia. It also licenses and sells Nexalin Device, a non-invasive and undetectable to the human body that can provide relief to its afflicted with mental health issues. The company is based in Houston, Texas.
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