Seek Returns logo

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

Updated on

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

Company Profile

SymbolCSCODUOL
Company NameCisco Systems, Inc.Duolingo, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyConsumer Discretionary
GICS IndustryCommunications EquipmentDiversified Consumer Services
Market Capitalization278.78 billion USD15.03 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateFebruary 16, 1990July 28, 2021
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CSCO 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.

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

Historical Performance at a Glance

SymbolCSCODUOL
5-Day Price Return0.72%-16.10%
13-Week Price Return14.16%-36.67%
26-Week Price Return13.06%-15.78%
52-Week Price Return56.93%80.43%
Month-to-Date Return3.41%-5.37%
Year-to-Date Return18.92%1.14%
10-Day Avg. Volume23.90M2.76M
3-Month Avg. Volume21.37M1.13M
3-Month Volatility19.90%49.18%
Beta0.980.83

Profitability

Return on Equity (TTM)

CSCO

21.50%

Communications Equipment Industry

Max
32.05%
Q3
19.58%
Median
11.77%
Q1
2.23%
Min
-11.93%

In the upper quartile for the Communications Equipment industry, CSCO’s Return on Equity of 21.50% 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.

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

Net Profit Margin (TTM)

CSCO

17.60%

Communications Equipment Industry

Max
23.65%
Q3
14.32%
Median
5.31%
Q1
1.45%
Min
-12.72%

A Net Profit Margin of 17.60% places CSCO in the upper quartile for the Communications Equipment 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.

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

Operating Profit Margin (TTM)

CSCO

20.30%

Communications Equipment Industry

Max
42.27%
Q3
18.90%
Median
6.21%
Q1
2.97%
Min
-20.72%

An Operating Profit Margin of 20.30% places CSCO in the upper quartile for the Communications Equipment 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.

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

Profitability at a Glance

SymbolCSCODUOL
Return on Equity (TTM)21.50%13.32%
Return on Assets (TTM)8.01%8.57%
Net Profit Margin (TTM)17.60%13.24%
Operating Profit Margin (TTM)20.30%9.54%
Gross Profit Margin (TTM)65.24%72.05%

Financial Strength

Current Ratio (MRQ)

CSCO

0.95

Communications Equipment Industry

Max
1.72
Q3
1.72
Median
1.46
Q1
1.18
Min
0.93

CSCO’s Current Ratio of 0.95 falls into the lower quartile for the Communications Equipment 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.

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

Debt-to-Equity Ratio (MRQ)

CSCO

0.64

Communications Equipment Industry

Max
1.55
Q3
0.92
Median
0.55
Q1
0.30
Min
0.00

CSCO’s Debt-to-Equity Ratio of 0.64 is typical for the Communications Equipment 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.

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

Interest Coverage Ratio (TTM)

CSCO

936.58

Communications Equipment Industry

Max
181.73
Q3
113.63
Median
7.59
Q1
3.82
Min
-5.39

With an Interest Coverage Ratio of 936.58, CSCO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Communications Equipment industry. This stems from either robust earnings or a conservative debt load.

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.

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

Financial Strength at a Glance

SymbolCSCODUOL
Current Ratio (MRQ)0.952.81
Quick Ratio (MRQ)0.872.77
Debt-to-Equity Ratio (MRQ)0.640.00
Interest Coverage Ratio (TTM)936.58--

Growth

Revenue Growth

CSCO 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

CSCO 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)

CSCO

2.30%

Communications Equipment Industry

Max
3.88%
Q3
2.75%
Median
0.93%
Q1
0.00%
Min
0.00%

CSCO’s Dividend Yield of 2.30% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.

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.

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

Dividend Payout Ratio (TTM)

CSCO

65.54%

Communications Equipment Industry

Max
111.16%
Q3
55.91%
Median
28.42%
Q1
0.00%
Min
0.00%

CSCO’s Dividend Payout Ratio of 65.54% is in the upper quartile for the Communications Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

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.

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

Dividend at a Glance

SymbolCSCODUOL
Dividend Yield (TTM)2.30%0.00%
Dividend Payout Ratio (TTM)65.54%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

CSCO

28.47

Communications Equipment Industry

Max
57.30
Q3
47.92
Median
27.50
Q1
17.89
Min
13.89

CSCO’s P/E Ratio of 28.47 is within the middle range for the Communications Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

DUOL

128.23

Diversified Consumer Services Industry

Max
33.95
Q3
25.14
Median
19.27
Q1
15.30
Min
5.58

At 128.23, 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.

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

Price-to-Sales Ratio (TTM)

CSCO

5.01

Communications Equipment Industry

Max
11.03
Q3
5.53
Median
2.20
Q1
0.99
Min
0.40

CSCO’s P/S Ratio of 5.01 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

DUOL

16.98

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 16.98, 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.

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

Price-to-Book Ratio (MRQ)

CSCO

4.92

Communications Equipment Industry

Max
9.66
Q3
5.60
Median
3.73
Q1
2.67
Min
0.30

CSCO’s P/B Ratio of 4.92 is within the conventional range for the Communications Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

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.

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

Valuation at a Glance

SymbolCSCODUOL
Price-to-Earnings Ratio (TTM)28.47128.23
Price-to-Sales Ratio (TTM)5.0116.98
Price-to-Book Ratio (MRQ)4.9219.08
Price-to-Free Cash Flow Ratio (TTM)21.7746.74