Analyzing Duolingo (NASDAQ:DUOL) and CXApp (NASDAQ:CXAI)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CXApp	-$2.45 million	-9.15	-$53.62 million	($1.22)	-0.93
Duolingo	$748.02 million	19.76	$16.07 million	$1.88	173.76

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for CXApp and Duolingo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CXApp	0	0	0	0	0.00
Duolingo	0	7	7	1	2.60

Duolingo has a consensus price target of $372.92, suggesting a potential upside of 14.16%. Given Duolingo’s stronger consensus rating and higher probable upside, analysts plainly believe Duolingo is more favorable than CXApp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CXApp	-751.90%	-281.11%	-158.66%
Duolingo	12.59%	11.74%	7.92%

Institutional and Insider Ownership

14.4% of CXApp shares are owned by institutional investors. Comparatively, 91.6% of Duolingo shares are owned by institutional investors. 16.2% of CXApp shares are owned by company insiders. Comparatively, 18.3% of Duolingo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

CXApp has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Duolingo has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Summary

Duolingo beats CXApp on 14 of the 15 factors compared between the two stocks.

About CXApp

CXApp Inc. provides a workplace experience platform for enterprise customers. It offers CXApp, a software-as-a-service platform with native mapping, analytics, on-device positioning, and applications technologies for use in various applications, such as workplace experience, employee engagement, desk and meeting room reservations, workplace analytics, occupancy management, content delivery, corporate communications and notifications, event management, live indoor mapping, wayfinding, and navigation. The company was formerly known as KINS Technology Group Inc. and changed its name to CXApp Inc. in March 2023. The company is based in Palo Alto, California.

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.