WallStSmart

Duolingo Inc (DUOL)vsSAP SE ADR (SAP)

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Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 3231% more annual revenue ($39.39B vs $1.18B). SAP leads profitability with a 20.4% profit margin vs 12.3%. SAP trades at a lower P/E of 29.6x. SAP earns a higher WallStSmart Score of 60/100 (C).

DUOL

Hold

42

out of 100

Grade: D

Growth: 6.0Profit: 7.0Value: 5.7Quality: 7.5
Piotroski: 2/9Altman Z: 2.81

SAP

Buy

60

out of 100

Grade: C

Growth: 6.0Profit: 8.5Value: 4.0Quality: 8.0
Piotroski: 6/9Altman Z: 3.10
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DUOLUndervalued (+57.3%)

Margin of Safety

+57.3%

Fair Value

$255.74

Current Price

$157.42

$98.32 discount

UndervaluedFair: $255.74Overvalued
SAPSignificantly Overvalued (-25.4%)

Margin of Safety

-25.4%

Fair Value

$156.60

Current Price

$234.06

$77.46 premium

UndervaluedFair: $156.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DUOL2 strengths · Avg: 10.0/10
Return on EquityProfitability
30.4%10/10

Every $100 of equity generates 30 in profit

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

SAP6 strengths · Avg: 9.0/10
Market CapQuality
$274.03B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.1010/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
20.4%9/10

Keeps 20 of every $100 in revenue as profit

Debt/EquityHealth
0.239/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

Free Cash FlowQuality
$1.71B8/10

Generating 1.7B in free cash flow

Areas to Watch

DUOL3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
51.9x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-90.9%2/10

Earnings declined 90.9%

SAP3 concerns · Avg: 3.3/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

P/E RatioValuation
29.6x4/10

Moderate valuation

Price/BookValuation
73.4x2/10

Trading at 73.4x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : DUOL

The strongest argument for DUOL centers on Return on Equity, Debt/Equity. Revenue growth of 13.7% demonstrates continued momentum.

Bull Case : SAP

The strongest argument for SAP centers on Market Cap, Altman Z-Score, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 29.5%. Revenue growth of 13.2% demonstrates continued momentum.

Bear Case : DUOL

The primary concerns for DUOL are Piotroski F-Score, P/E Ratio, EPS Growth. A P/E of 51.9x leaves little room for execution misses.

Bear Case : SAP

The primary concerns for SAP are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

DUOL profiles as a value stock while SAP is a mature play — different risk/reward profiles.

DUOL carries more volatility with a beta of 1.02 — expect wider price swings.

DUOL is growing revenue faster at 13.7% — sustainability is the question.

SAP generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

SAP scores higher overall (60/100 vs 42/100), backed by strong 20.4% margins and 13.2% revenue growth. DUOL offers better value entry with a 57.3% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Duolingo Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Duolingo Inc (DUOL) is a leading player in the edtech sector, renowned for its innovative language-learning platform that has successfully engaged over 500 million users globally through a unique freemium model augmented by gamification. Established in 2011, Duolingo utilizes advanced AI-driven personalized learning to enhance user experience and retention across more than 30 languages. The company's unwavering mission to provide accessible education aligns with the rapid expansion of the digital learning market, offering substantial growth potential for institutional investors seeking to tap into the future of educational technology.

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SAP SE ADR

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.

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