Contrasting LanzaTech Global (NASDAQ:LNZA) & Duolingo (NASDAQ:DUOL)

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

Analyst Ratings

This is a summary of current ratings for Duolingo and LanzaTech Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duolingo	1	11	12	0	2.46
LanzaTech Global	1	2	0	1	2.25

Duolingo currently has a consensus price target of $301.75, indicating a potential upside of 128.72%. LanzaTech Global has a consensus price target of $14.00, indicating a potential upside of 16.67%. Given Duolingo’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Duolingo is more favorable than LanzaTech Global.

Institutional and Insider Ownership

91.6% of Duolingo shares are owned by institutional investors. Comparatively, 17.8% of LanzaTech Global shares are owned by institutional investors. 18.3% of Duolingo shares are owned by company insiders. Comparatively, 4.5% of LanzaTech Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Duolingo and LanzaTech Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duolingo	40.03%	14.02%	9.15%
LanzaTech Global	-190.24%	-78,473.86%	-58.79%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duolingo	$748.02 million	8.15	$88.57 million	$7.89	16.72
LanzaTech Global	$49.59 million	0.56	-$137.73 million	($23.16)	-0.52

Duolingo has higher revenue and earnings than LanzaTech Global. LanzaTech Global 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 LanzaTech Global on 13 of the 14 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 LanzaTech Global

LanzaTech Global, Inc. operates as a nature-based carbon refining company in the United States and internationally. The company transforms waste carbon into the chemical building blocks for consumer goods, such as sustainable fuels, fabrics, and packaging. It is also developing biocatalysts and processes to produce a suite of additional products utilizing novel biocatalysts, including acetone and isopropanol (IPA) and industrial solvents used in various applications, including production of polymers from IPA. LanzaTech Global, Inc. was founded in 2005 and is headquartered in Skokie, Illinois.