Critical Review: Duolingo (NASDAQ:DUOL) versus Banzai International (NASDAQ:BNZI)

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

Earnings & Valuation

This table compares Duolingo and Banzai International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duolingo	$634.49 million	19.07	$16.07 million	$0.97	289.34
Banzai International	$4.56 million	0.44	-$14.41 million	N/A	N/A

Duolingo has higher revenue and earnings than Banzai International.

Risk and Volatility

Duolingo has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Banzai International has a beta of -0.65, meaning that its share price is 165% less volatile than the S&P 500.

Profitability

This table compares Duolingo and Banzai International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duolingo	10.44%	9.64%	6.57%
Banzai International	N/A	N/A	-127.56%

Institutional & Insider Ownership

91.6% of Duolingo shares are held by institutional investors. Comparatively, 96.8% of Banzai International shares are held by institutional investors. 18.3% of Duolingo shares are held by insiders. Comparatively, 57.7% of Banzai International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Duolingo and Banzai International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duolingo	1	2	8	1	2.75
Banzai International	0	0	1	0	3.00

Duolingo presently has a consensus price target of $255.50, suggesting a potential downside of 8.96%. Banzai International has a consensus price target of $2.50, suggesting a potential downside of 46.58%. Given Duolingo’s higher probable upside, equities analysts clearly believe Duolingo is more favorable than Banzai International.

Summary

Duolingo beats Banzai International on 10 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 Banzai International

Banzai International, Inc., a marketing technology company, provides data-driven marketing and sales solutions for various businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its products include Demio, a browser-based webinar platform with data and marketing features designed to help businesses engage with their audience through live events and on-demand, interactive video content; Boost, a software-as-a-service (SaaS) solution for social sharing by event registrants; and Reach, a SaaS and managed service to increase registration and attendance of marketing events. The company serves healthcare, financial services, e-commerce, technology, media, and other industries. Banzai International, Inc. was founded in 2015 and is based in Bainbridge Island, Washington.