Financial Comparison: Duolingo (NASDAQ:DUOL) versus Firefly Neuroscience (NASDAQ:AIFF)

Firefly Neuroscience (NASDAQ:AIFF) and Duolingo (NASDAQ:DUOL) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Institutional and Insider Ownership

5.0% of Firefly Neuroscience shares are owned by institutional investors. Comparatively, 91.6% of Duolingo shares are owned by institutional investors. 6.4% of Firefly Neuroscience shares are owned by insiders. Comparatively, 16.6% of Duolingo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Firefly Neuroscience has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Duolingo has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Firefly Neuroscience and Duolingo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Firefly Neuroscience	1	0	0	0	1.00
Duolingo	2	18	2	0	2.00

Duolingo has a consensus target price of $197.61, suggesting a potential upside of 57.38%. Given Duolingo’s stronger consensus rating and higher probable upside, analysts clearly believe Duolingo is more favorable than Firefly Neuroscience.

Profitability

This table compares Firefly Neuroscience and Duolingo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Firefly Neuroscience	-565.40%	-94.68%	-73.51%
Duolingo	38.44%	14.07%	9.45%

Earnings & Valuation

This table compares Firefly Neuroscience and Duolingo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Firefly Neuroscience	$1.14 million	18.78	-$19.88 million	($0.63)	-2.18
Duolingo	$1.04 billion	5.64	$414.07 million	$8.69	14.45

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

Summary

Duolingo beats Firefly Neuroscience on 13 of the 14 factors compared between the two stocks.

About Firefly Neuroscience

Firefly Neuroscience, Inc., a medical technology and artificial intelligence company, provides neuroscientific solutions that improve outcomes for patients with mental illnesses and neurological disorders. The company offers Brain Network Analytics, a software that focuses on diagnostic and treatment for people suffering from mental illnesses and cognitive disorders, including depression, dementia, anxiety disorders, concussions, and attention-deficit/hyperactivity disorder. It serves pharmaceutical companies and medical practitioners. Firefly Neuroscience, Inc. is based in Toronto, 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.