Analyzing Banzai International (NASDAQ:BNZI) and Duolingo (NASDAQ:DUOL)

Duolingo (NASDAQ:DUOL) and Banzai International (NASDAQ:BNZI) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Earnings & Valuation

This table compares Duolingo and Banzai International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duolingo	$634.49 million	19.07	$16.07 million	$0.97	289.34
Banzai International	$4.56 million	0.44	-$14.41 million	N/A	N/A

Duolingo has higher revenue and earnings than Banzai International.

Volatility and Risk

Duolingo has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Banzai International has a beta of -0.65, meaning that its share price is 165% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Duolingo and Banzai International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duolingo	1	2	8	1	2.75
Banzai International	0	0	1	0	3.00

Duolingo currently has a consensus target price of $255.50, suggesting a potential downside of 8.96%. Banzai International has a consensus target price of $2.50, suggesting a potential downside of 46.58%. Given Duolingo’s higher possible upside, research analysts clearly believe Duolingo is more favorable than Banzai International.

Profitability

This table compares Duolingo and Banzai International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duolingo	10.44%	9.64%	6.57%
Banzai International	N/A	N/A	-127.56%

Insider and Institutional Ownership

91.6% of Duolingo shares are owned by institutional investors. Comparatively, 96.8% of Banzai International shares are owned by institutional investors. 18.3% of Duolingo shares are owned by company insiders. Comparatively, 57.7% of Banzai International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Duolingo beats Banzai International on 10 of the 13 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 Banzai International

Banzai International, Inc., a marketing technology company, provides data-driven marketing and sales solutions for various businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its products include Demio, a browser-based webinar platform with data and marketing features designed to help businesses engage with their audience through live events and on-demand, interactive video content; Boost, a software-as-a-service (SaaS) solution for social sharing by event registrants; and Reach, a SaaS and managed service to increase registration and attendance of marketing events. The company serves healthcare, financial services, e-commerce, technology, media, and other industries. Banzai International, Inc. was founded in 2015 and is based in Bainbridge Island, Washington.