Duolingo (NASDAQ:DUOL) and Loop Industries (NASDAQ:LOOP) Critical Survey

Loop Industries (NASDAQ:LOOP) and Duolingo (NASDAQ:DUOL) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares Loop Industries and Duolingo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loop Industries	$11.15 million	5.42	-$15.06 million	($0.06)	-20.83
Duolingo	$748.02 million	7.46	$88.57 million	$7.89	15.30

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

Risk & Volatility

Loop Industries has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Duolingo has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Loop Industries	-120.79%	N/A	-18.36%
Duolingo	40.03%	14.02%	9.15%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Loop Industries and Duolingo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loop Industries	0	0	0	0	0.00
Duolingo	1	11	12	0	2.46

Duolingo has a consensus price target of $300.25, suggesting a potential upside of 148.76%. Given Duolingo’s stronger consensus rating and higher probable upside, analysts clearly believe Duolingo is more favorable than Loop Industries.

Insider and Institutional Ownership

4.9% of Loop Industries shares are owned by institutional investors. Comparatively, 91.6% of Duolingo shares are owned by institutional investors. 45.9% of Loop Industries shares are owned by insiders. Comparatively, 18.3% of Duolingo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Duolingo beats Loop Industries on 12 of the 14 factors compared between the two stocks.

About Loop Industries

Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks. Its polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.

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.