Seek Returns logo

ADBE vs. DUOL: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ADBE and DUOL, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolADBEDUOL
Company NameAdobe Inc.Duolingo, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyConsumer Discretionary
GICS IndustrySoftwareDiversified Consumer Services
Market Capitalization149.93 billion USD15.53 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateAugust 13, 1986July 28, 2021
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ADBE and DUOL by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ADBE vs. DUOL: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolADBEDUOL
5-Day Price Return1.39%2.73%
13-Week Price Return-15.99%-34.86%
26-Week Price Return-23.04%-21.25%
52-Week Price Return-37.24%63.57%
Month-to-Date Return-1.19%-2.21%
Year-to-Date Return-20.52%4.52%
10-Day Avg. Volume3.74M2.91M
3-Month Avg. Volume3.60M1.17M
3-Month Volatility26.08%57.15%
Beta1.510.84

Profitability

Return on Equity (TTM)

ADBE

51.65%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

In the upper quartile for the Software industry, ADBE’s Return on Equity of 51.65% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

DUOL

13.32%

Diversified Consumer Services Industry

Max
32.65%
Q3
29.77%
Median
16.63%
Q1
11.08%
Min
2.26%

DUOL’s Return on Equity of 13.32% is on par with the norm for the Diversified Consumer Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

ADBE vs. DUOL: A comparison of their Return on Equity (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Net Profit Margin (TTM)

ADBE

30.39%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

A Net Profit Margin of 30.39% places ADBE in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

DUOL

13.24%

Diversified Consumer Services Industry

Max
18.84%
Q3
13.34%
Median
12.22%
Q1
7.92%
Min
3.76%

DUOL’s Net Profit Margin of 13.24% is aligned with the median group of its peers in the Diversified Consumer Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

ADBE vs. DUOL: A comparison of their Net Profit Margin (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Operating Profit Margin (TTM)

ADBE

36.37%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

An Operating Profit Margin of 36.37% places ADBE in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

DUOL

9.54%

Diversified Consumer Services Industry

Max
26.63%
Q3
19.23%
Median
15.23%
Q1
8.71%
Min
-0.71%

DUOL’s Operating Profit Margin of 9.54% is around the midpoint for the Diversified Consumer Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

ADBE vs. DUOL: A comparison of their Operating Profit Margin (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Profitability at a Glance

SymbolADBEDUOL
Return on Equity (TTM)51.65%13.32%
Return on Assets (TTM)23.26%8.57%
Net Profit Margin (TTM)30.39%13.24%
Operating Profit Margin (TTM)36.37%9.54%
Gross Profit Margin (TTM)89.25%72.05%

Financial Strength

Current Ratio (MRQ)

ADBE

0.99

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

ADBE’s Current Ratio of 0.99 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

DUOL

2.81

Diversified Consumer Services Industry

Max
3.40
Q3
1.97
Median
1.66
Q1
0.60
Min
0.15

DUOL’s Current Ratio of 2.81 is in the upper quartile for the Diversified Consumer Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

ADBE vs. DUOL: A comparison of their Current Ratio (MRQ) against their respective Software and Diversified Consumer Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ADBE

0.54

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

ADBE’s Debt-to-Equity Ratio of 0.54 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

DUOL

0.00

Diversified Consumer Services Industry

Max
2.92
Q3
1.22
Median
0.36
Q1
0.01
Min
0.00

Falling into the lower quartile for the Diversified Consumer Services industry, DUOL’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ADBE vs. DUOL: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Diversified Consumer Services industry benchmarks.

Interest Coverage Ratio (TTM)

ADBE

67.02

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

ADBE’s Interest Coverage Ratio of 67.02 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

DUOL

--

Diversified Consumer Services Industry

Max
13.44
Q3
10.58
Median
5.57
Q1
3.04
Min
-2.17

Interest Coverage Ratio data for DUOL is currently unavailable.

ADBE vs. DUOL: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Financial Strength at a Glance

SymbolADBEDUOL
Current Ratio (MRQ)0.992.81
Quick Ratio (MRQ)0.852.77
Debt-to-Equity Ratio (MRQ)0.540.00
Interest Coverage Ratio (TTM)67.02--

Growth

Revenue Growth

ADBE vs. DUOL: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ADBE vs. DUOL: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ADBE

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

ADBE currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

DUOL

0.00%

Diversified Consumer Services Industry

Max
2.29%
Q3
0.98%
Median
0.00%
Q1
0.00%
Min
0.00%

DUOL currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ADBE vs. DUOL: A comparison of their Dividend Yield (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Dividend Payout Ratio (TTM)

ADBE

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

ADBE has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

DUOL

0.00%

Diversified Consumer Services Industry

Max
35.94%
Q3
25.79%
Median
0.00%
Q1
0.00%
Min
0.00%

DUOL has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ADBE vs. DUOL: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Dividend at a Glance

SymbolADBEDUOL
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ADBE

22.30

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

In the lower quartile for the Software industry, ADBE’s P/E Ratio of 22.30 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

DUOL

132.51

Diversified Consumer Services Industry

Max
33.95
Q3
25.14
Median
19.27
Q1
15.30
Min
5.58

At 132.51, DUOL’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Diversified Consumer Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ADBE vs. DUOL: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Price-to-Sales Ratio (TTM)

ADBE

6.78

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

ADBE’s P/S Ratio of 6.78 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

DUOL

17.54

Diversified Consumer Services Industry

Max
3.29
Q3
2.54
Median
2.27
Q1
1.92
Min
1.28

With a P/S Ratio of 17.54, DUOL trades at a valuation that eclipses even the highest in the Diversified Consumer Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ADBE vs. DUOL: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Diversified Consumer Services industry benchmarks.

Price-to-Book Ratio (MRQ)

ADBE

15.45

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

ADBE’s P/B Ratio of 15.45 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

DUOL

19.08

Diversified Consumer Services Industry

Max
7.00
Q3
6.37
Median
3.31
Q1
2.13
Min
0.98

At 19.08, DUOL’s P/B Ratio is at an extreme premium to the Diversified Consumer Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ADBE vs. DUOL: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Diversified Consumer Services industry benchmarks.

Valuation at a Glance

SymbolADBEDUOL
Price-to-Earnings Ratio (TTM)22.30132.51
Price-to-Sales Ratio (TTM)6.7817.54
Price-to-Book Ratio (MRQ)15.4519.08
Price-to-Free Cash Flow Ratio (TTM)16.2348.30