Duolingo, Inc. (DUOL) vs Paylocity Holding Corporation (PCTY)

Duolingo, Inc. and Paylocity Holding Corporation are both Software Application companies. Duolingo, Inc. and Paylocity Holding Corporation are of similar size ($7.6B and $6.9B). Duolingo, Inc. trades at the lower P/E: 16.2× against 28.6×. Duolingo, Inc. grew revenue faster over the last twelve months: 29.4% against 11.0%. Duolingo, Inc. has the higher net margin (35.9% vs 15.2%) and the higher return on invested capital (53.9% vs 23.4%). Across the 22 metrics below, Duolingo, Inc. leads on 17 and Paylocity Holding Corporation on 5.

Valuation

Metric DUOL PCTY Software Application median
P/E 16.16 28.62 24.79
P/S 5.85 4.37 2.67
P/B 4.75 6.34 3.01
Price to free cash flow 16.86 18.09 16.59
EV/EBITDA 31.93 16.84 14.40
EV/Sales 4.78 4.26 2.62
Earnings yield 6.19% 3.49% 0.00%
Free cash flow yield 5.93% 5.53% 1.91%

Profitability

Metric DUOL PCTY Software Application median
Gross margin 72.72% 69.19% 67.03%
Operating margin 13.72% 21.79% 0.00%
Net margin 35.87% 15.23% 0.00%
Free cash flow margin 34.72% 24.15% 4.32%
Return on equity 34.42% 21.97% 0.00%
Return on assets 22.72% 5.82% 0.00%
Return on invested capital 53.94% 23.40% 0.00%

Growth

Metric DUOL PCTY Software Application median
Revenue growth (TTM) 29.36% 11.04% 12.40%
EPS growth (last fiscal year) 355.85% 22.39% —
Revenue growth, 5-year CAGR 45.03% 22.75% 13.72%
Net income growth, 5-year CAGR 0.00% 30.89% 0.00%

Health

Metric DUOL PCTY Software Application median
Debt to equity 0.06 0.07 0.02
Current ratio 2.72 1.09 1.55
Net debt to EBITDA (7.07) (0.43) 0.06

Dividend

Metric DUOL PCTY Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric DUOL PCTY Software Application median
Market cap 6.90b 7.56b 396.11m

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