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

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

Company Profile

DUOL is a standard domestic listing, while NTES trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolDUOLNTES
Company NameDuolingo, Inc.NetEase, Inc.
CountryUnited StatesChina
GICS SectorConsumer DiscretionaryCommunication Services
GICS IndustryDiversified Consumer ServicesEntertainment
Market Capitalization15.03 billion USD86.89 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJuly 28, 2021June 30, 2000
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of DUOL and NTES 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.

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

Historical Performance at a Glance

SymbolDUOLNTES
5-Day Price Return-16.10%3.04%
13-Week Price Return-36.67%26.29%
26-Week Price Return-15.78%30.71%
52-Week Price Return80.43%50.64%
Month-to-Date Return-5.37%3.53%
Year-to-Date Return1.14%51.22%
10-Day Avg. Volume2.76M0.87M
3-Month Avg. Volume1.13M1.16M
3-Month Volatility49.18%37.46%
Beta0.830.66

Profitability

Return on Equity (TTM)

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.

NTES

23.73%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

In the upper quartile for the Entertainment industry, NTES’s Return on Equity of 23.73% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

Net Profit Margin (TTM)

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.

NTES

30.17%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

A Net Profit Margin of 30.17% places NTES in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

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.

NTES

30.21%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

An Operating Profit Margin of 30.21% places NTES in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolDUOLNTES
Return on Equity (TTM)13.32%23.73%
Return on Assets (TTM)8.57%16.92%
Net Profit Margin (TTM)13.24%30.17%
Operating Profit Margin (TTM)9.54%30.21%
Gross Profit Margin (TTM)72.05%62.71%

Financial Strength

Current Ratio (MRQ)

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.

NTES

3.21

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

NTES’s Current Ratio of 3.21 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

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.

NTES

0.07

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

NTES’s Debt-to-Equity Ratio of 0.07 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

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.

NTES

161.13

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

With an Interest Coverage Ratio of 161.13, NTES demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

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

Financial Strength at a Glance

SymbolDUOLNTES
Current Ratio (MRQ)2.813.21
Quick Ratio (MRQ)2.773.06
Debt-to-Equity Ratio (MRQ)0.000.07
Interest Coverage Ratio (TTM)--161.13

Growth

Revenue Growth

DUOL vs. NTES: 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

DUOL vs. NTES: 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)

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.

NTES

2.02%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.02%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

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

Dividend Payout Ratio (TTM)

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.

NTES

36.47%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

NTES’s Dividend Payout Ratio of 36.47% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolDUOLNTES
Dividend Yield (TTM)0.00%2.02%
Dividend Payout Ratio (TTM)0.00%36.47%

Valuation

Price-to-Earnings Ratio (TTM)

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.

NTES

18.03

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

In the lower quartile for the Entertainment industry, NTES’s P/E Ratio of 18.03 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

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

Price-to-Sales Ratio (TTM)

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.

NTES

5.44

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

NTES’s P/S Ratio of 5.44 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

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.

NTES

3.25

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

NTES’s P/B Ratio of 3.25 is within the conventional range for the Entertainment 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 vs. NTES: A comparison of their Price-to-Book Ratio (MRQ) against their respective Diversified Consumer Services and Entertainment industry benchmarks.

Valuation at a Glance

SymbolDUOLNTES
Price-to-Earnings Ratio (TTM)128.2318.03
Price-to-Sales Ratio (TTM)16.985.44
Price-to-Book Ratio (MRQ)19.083.25
Price-to-Free Cash Flow Ratio (TTM)46.7414.64