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

Duolingo, Inc. and Paylocity Holding Corporation are both Software Application companies. Paylocity Holding Corporation is the larger, with a market value of $8.9B against $7.4B — 1.2× the size. Paylocity Holding Corporation trades at the lower P/E: 34.1× against 50.7×. Duolingo, Inc. grew revenue faster over the last twelve months: 22.6% against 11.0%. Paylocity Holding Corporation has the higher net margin (15.2% vs 12.3%) and the lower return on invested capital (23.4% vs 47.6%). Across the 22 metrics below, Duolingo, Inc. leads on 13 and Paylocity Holding Corporation on 9.

Valuation

Metric DUOL PCTY Software Application median
P/E 50.70 34.07 25.90
P/S 6.23 5.20 3.04
P/B 4.97 7.54 2.60
Price to free cash flow 18.28 21.54 17.17
EV/EBITDA 37.65 20.12 15.48
EV/Sales 5.14 5.09 2.89
Earnings yield 1.97% 2.94% 0.00%
Free cash flow yield 5.47% 4.64% 1.98%

Profitability

Metric DUOL PCTY Software Application median
Gross margin 72.81% 69.19% 66.89%
Operating margin 12.36% 21.79% 0.00%
Net margin 12.33% 15.23% 0.00%
Free cash flow margin 36.86% 24.15% 5.77%
Return on equity 10.45% 21.97% 0.00%
Return on assets 7.19% 5.82% 0.00%
Return on invested capital 47.59% 23.40% 0.00%

Growth

Metric DUOL PCTY Software Application median
Revenue growth (TTM) 22.61% 11.04% 12.27%
EPS growth (last fiscal year) 355.85% 22.39% 32.11%
Revenue growth, 5-year CAGR 45.03% 22.75% 14.34%
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 2.75 1.09 1.53
Net debt to EBITDA (7.07) (0.43) 0.09

Dividend

Metric DUOL PCTY Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric DUOL PCTY Software Application median
Market cap 7.35b 8.85b 487.58m

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