WallStSmart

Adobe Systems Incorporated (ADBE)vsDuolingo Inc (DUOL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Adobe Systems Incorporated generates 2125% more annual revenue ($24.45B vs $1.10B). DUOL leads profitability with a 38.4% profit margin vs 29.5%. DUOL trades at a lower P/E of 13.0x. ADBE earns a higher WallStSmart Score of 74/100 (B).

ADBE

Strong Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 10.0Value: 8.7Quality: 6.0
Piotroski: 4/9Altman Z: 4.35

DUOL

Buy

65

out of 100

Grade: C+

Growth: 8.7Profit: 8.5Value: 7.7Quality: 6.5
Piotroski: 3/9Altman Z: 1.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADBEUndervalued (+42.2%)

Margin of Safety

+42.2%

Fair Value

$437.61

Current Price

$253.04

$184.57 discount

UndervaluedFair: $437.61Overvalued
DUOLUndervalued (+56.4%)

Margin of Safety

+56.4%

Fair Value

$250.90

Current Price

$107.99

$142.91 discount

UndervaluedFair: $250.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADBE6 strengths · Avg: 9.3/10
Return on EquityProfitability
58.8%10/10

Every $100 of equity generates 59 in profit

Operating MarginProfitability
38.8%10/10

Strong operational efficiency at 38.8%

Altman Z-ScoreHealth
4.3510/10

Safe zone — low bankruptcy risk

Market CapQuality
$103.68B9/10

Large-cap with strong market position

Profit MarginProfitability
29.5%9/10

Keeps 30 of every $100 in revenue as profit

PEG RatioValuation
0.728/10

Growing faster than its price suggests

DUOL6 strengths · Avg: 9.0/10
Return on EquityProfitability
37.0%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
38.4%10/10

Keeps 38 of every $100 in revenue as profit

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
26.5%8/10

Revenue surging 26.5% year-over-year

EPS GrowthGrowth
23.6%8/10

Earnings expanding 23.6% YoY

Areas to Watch

ADBE1 concerns · Avg: 4.0/10
Price/BookValuation
9.0x4/10

Trading at 9.0x book value

DUOL2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.202/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ADBE

The strongest argument for ADBE centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 29.5% and operating margin at 38.8%. Revenue growth of 12.0% demonstrates continued momentum.

Bull Case : DUOL

The strongest argument for DUOL centers on Return on Equity, Profit Margin, Debt/Equity. Profitability is solid with margins at 38.4% and operating margin at 15.4%. Revenue growth of 26.5% demonstrates continued momentum.

Bear Case : ADBE

The primary concerns for ADBE are Price/Book.

Bear Case : DUOL

The primary concerns for DUOL are Piotroski F-Score, Altman Z-Score.

Key Dynamics to Monitor

ADBE profiles as a mature stock while DUOL is a growth play — different risk/reward profiles.

ADBE carries more volatility with a beta of 1.42 — expect wider price swings.

DUOL is growing revenue faster at 26.5% — sustainability is the question.

ADBE generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

ADBE scores higher overall (74/100 vs 65/100), backed by strong 29.5% margins and 12.0% revenue growth. DUOL offers better value entry with a 56.4% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Adobe Systems Incorporated

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Adobe Inc. is an American multinational computer software company. Incorporated in Delaware and headquartered in San Jose, California, it has historically specialized in software for the creation and publication of a wide range of content, including graphics, photography, illustration, animation, multimedia, motion pictures and print. The company has expanded into digital marketing management software. Adobe has millions of users worldwide. Flagship products include: Photoshop image editing software, Adobe Illustrator vector-based illustration software, Adobe Acrobat Reader and the Portable Document Format (PDF), plus a host of tools primarily for audio-visual content creation, editing and publishing.

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Duolingo Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Duolingo Inc (DUOL) is a prominent player in the education technology landscape, recognized for its innovative language-learning platform that has successfully engaged over 500 million users globally through a freemium model augmented by gamification strategies. Established in 2011, Duolingo distinguishes itself with a robust focus on AI-driven personalized learning solutions, fostering user acquisition and retention across more than 30 languages. With a mission to make education accessible and a strong user-centric design, Duolingo is well-positioned to capitalize on the growing demand for digital learning solutions, presenting a compelling opportunity for institutional investors looking to invest in the evolving edtech sector.

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