Seek Returns logo

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

Updated on

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

Company Profile

SymbolDOCUDUOL
Company NameDocuSign, Inc.Duolingo, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyConsumer Discretionary
GICS IndustrySoftwareDiversified Consumer Services
Market Capitalization14.29 billion USD15.03 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateApril 27, 2018July 28, 2021
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of DOCU 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.

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

Historical Performance at a Glance

SymbolDOCUDUOL
5-Day Price Return0.33%-16.10%
13-Week Price Return-19.52%-36.67%
26-Week Price Return-24.66%-15.78%
52-Week Price Return35.93%80.43%
Month-to-Date Return-6.52%-5.37%
Year-to-Date Return-21.38%1.14%
10-Day Avg. Volume2.59M2.76M
3-Month Avg. Volume2.72M1.13M
3-Month Volatility52.15%49.18%
Beta1.030.83

Profitability

Return on Equity (TTM)

DOCU

55.53%

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, DOCU’s Return on Equity of 55.53% 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.

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

Net Profit Margin (TTM)

DOCU

36.50%

Software Industry

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

A Net Profit Margin of 36.50% places DOCU 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.

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

Operating Profit Margin (TTM)

DOCU

7.84%

Software Industry

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

DOCU’s Operating Profit Margin of 7.84% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

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.

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

Profitability at a Glance

SymbolDOCUDUOL
Return on Equity (TTM)55.53%13.32%
Return on Assets (TTM)28.58%8.57%
Net Profit Margin (TTM)36.50%13.24%
Operating Profit Margin (TTM)7.84%9.54%
Gross Profit Margin (TTM)79.23%72.05%

Financial Strength

Current Ratio (MRQ)

DOCU

0.79

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

DOCU’s Current Ratio of 0.79 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.

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

Debt-to-Equity Ratio (MRQ)

DOCU

0.00

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

DOCU’s Debt-to-Equity Ratio of 0.00 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.

DOCU 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)

DOCU

-46.32

Software Industry

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

DOCU has a negative Interest Coverage Ratio of -46.32. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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.

DOCU 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

SymbolDOCUDUOL
Current Ratio (MRQ)0.792.81
Quick Ratio (MRQ)0.742.77
Debt-to-Equity Ratio (MRQ)0.000.00
Interest Coverage Ratio (TTM)-46.32--

Growth

Revenue Growth

DOCU 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

DOCU 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)

DOCU

0.00%

Software Industry

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

DOCU 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.

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

Dividend Payout Ratio (TTM)

DOCU

0.00%

Software Industry

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

DOCU 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.

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

Dividend at a Glance

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

Valuation

Price-to-Earnings Ratio (TTM)

DOCU

12.90

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, DOCU’s P/E Ratio of 12.90 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

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.

DOCU 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)

DOCU

4.71

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

In the lower quartile for the Software industry, DOCU’s P/S Ratio of 4.71 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

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.

DOCU 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)

DOCU

8.22

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

DOCU’s P/B Ratio of 8.22 is within the conventional range for the Software 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.

DOCU 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

SymbolDOCUDUOL
Price-to-Earnings Ratio (TTM)12.90128.23
Price-to-Sales Ratio (TTM)4.7116.98
Price-to-Book Ratio (MRQ)8.2219.08
Price-to-Free Cash Flow Ratio (TTM)15.5846.74