LanzaTech Global (NASDAQ:LNZA) vs. Duolingo (NASDAQ:DUOL) Critical Contrast

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

Profitability

This table compares LanzaTech Global and Duolingo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LanzaTech Global	-190.24%	-78,473.86%	-58.79%
Duolingo	40.03%	14.02%	9.15%

Insider and Institutional Ownership

17.8% of LanzaTech Global shares are owned by institutional investors. Comparatively, 91.6% of Duolingo shares are owned by institutional investors. 4.5% of LanzaTech Global shares are owned by company insiders. Comparatively, 15.7% of Duolingo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares LanzaTech Global and Duolingo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LanzaTech Global	$49.59 million	0.56	-$137.73 million	($23.16)	-0.52
Duolingo	$748.02 million	8.29	$88.57 million	$7.89	16.99

Duolingo has higher revenue and earnings than LanzaTech Global. LanzaTech Global is trading at a lower price-to-earnings ratio than Duolingo, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for LanzaTech Global and Duolingo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LanzaTech Global	1	2	0	1	2.25
Duolingo	1	11	12	0	2.46

LanzaTech Global currently has a consensus price target of $14.00, indicating a potential upside of 16.67%. Duolingo has a consensus price target of $301.75, indicating a potential upside of 125.09%. Given Duolingo’s stronger consensus rating and higher possible upside, analysts plainly believe Duolingo is more favorable than LanzaTech Global.

Summary

Duolingo beats LanzaTech Global on 13 of the 14 factors compared between the two stocks.

About LanzaTech Global

LanzaTech Global, Inc. operates as a nature-based carbon refining company in the United States and internationally. The company transforms waste carbon into the chemical building blocks for consumer goods, such as sustainable fuels, fabrics, and packaging. It is also developing biocatalysts and processes to produce a suite of additional products utilizing novel biocatalysts, including acetone and isopropanol (IPA) and industrial solvents used in various applications, including production of polymers from IPA. LanzaTech Global, Inc. was founded in 2005 and is headquartered in Skokie, Illinois.

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.