Analyzing Smead Value C (NASDAQ:SVFCX) and Duolingo (NASDAQ:DUOL)

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

Risk and Volatility

Duolingo has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Smead Value C has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Insider & Institutional Ownership

91.6% of Duolingo shares are owned by institutional investors. Comparatively, 60.2% of Smead Value C shares are owned by institutional investors. 18.3% of Duolingo shares are owned by company insiders. Comparatively, 10.3% of Smead Value C shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Duolingo and Smead Value C, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duolingo	0	5	6	1	2.67
Smead Value C	0	0	0	0	0.00

Duolingo currently has a consensus price target of $331.33, indicating a potential downside of 4.38%. Given Duolingo’s stronger consensus rating and higher possible upside, research analysts clearly believe Duolingo is more favorable than Smead Value C.

Earnings and Valuation

This table compares Duolingo and Smead Value C”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duolingo	$689.46 million	22.11	$16.07 million	$1.83	189.36
Smead Value C	N/A	N/A	-$6.48 million	N/A	N/A

Duolingo has higher revenue and earnings than Smead Value C.

Profitability

This table compares Duolingo and Smead Value C’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duolingo	12.59%	11.74%	7.92%
Smead Value C	N/A	N/A	-17.75%

Summary

Duolingo beats Smead Value C on 12 of the 12 factors compared between the two stocks.

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.

About Smead Value C

SVF Investment Corp. 3 does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. The company was formerly known as SVF Investment III Corp. and changed its name to SVF Investment Corp. 3 in January 2021. SVF Investment Corp. 3 was incorporated in 2020 and is based in San Carlos, California.