DAO vs. DUOL

Last updated Jun 4, 2026

DAO (Youdao, Inc.) and DUOL (Duolingo, Inc.) are both stocks. Both operate in the Software - Application industry within the Technology sector. Over the past 3 years, DAO returned 33.62%/yr vs -11.69%/yr for DUOL. At a 0.27 correlation, their price movements are largely independent.

Performance

DAO vs. DUOL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Youdao, Inc. (DAO) and Duolingo, Inc. (DUOL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DAO achieves a 12.90% return, which is significantly higher than DUOL's -38.80% return.

DAO

• 1D: -1.64%
• 1M: 1.79%
• YTD: 12.90%
• 6M: 15.65%
• 1Y: 27.29%
• 3Y*: 33.62%
• 5Y*: -13.15%
• 10Y*: —

DUOL

• 1D: -2.32%
• 1M: -2.57%
• YTD: -38.80%
• 6M: -42.05%
• 1Y: -79.08%
• 3Y*: -11.69%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

DAO vs. DUOL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DAO Youdao, Inc.	12.90%	36.22%	87.82%	-26.77%	-56.89%	32.20%
DUOL Duolingo, Inc.	-38.80%	-45.87%	42.93%	218.92%	-32.97%	-23.67%

Correlation

The correlation between DAO and DUOL is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (All Time) Calculated using the full available price history since Jul 29, 2021	0.27

Fundamentals

EPS DAO : $0.58 DUOL : $11.67
PE Ratio DAO : 19.68 DUOL : 9.20
PEG Ratio DAO : 0.66 DUOL : 0.02
PS Ratio DAO : 0.23 DUOL : 3.54
Total Revenue (TTM) DAO : $5.96B DUOL : $1.10B
Gross Profit (TTM) DAO : $2.60B DUOL : $798.46M
EBITDA (TTM) DAO : $134.92M DUOL : $167.30M

Return for Risk

DAO vs. DUOL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DAO

DAO Risk / Return Rank: 58
DAO Sharpe Ratio Rank: 59
DAO Sortino Ratio Rank: 57
DAO Omega Ratio Rank: 55
DAO Calmar Ratio Rank: 60
DAO Martin Ratio Rank: 60

DUOL

DUOL Risk / Return Rank: 3
DUOL Sharpe Ratio Rank: 1
DUOL Sortino Ratio Rank: 1
DUOL Omega Ratio Rank: 1
DUOL Calmar Ratio Rank: 3
DUOL Martin Ratio Rank: 11

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DAO vs. DUOL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Youdao, Inc. (DAO) and Duolingo, Inc. (DUOL). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	DAO	DUOL	Difference
Sharpe ratio Return per unit of total volatility	0.52	-1.27	+1.80
Sortino ratio Return per unit of downside risk	1.12	-2.70	+3.82
Omega ratio Gain probability vs. loss probability	1.14	0.68	+0.46
Calmar ratio Return relative to maximum drawdown	0.93	-0.96	+1.89
Martin ratio Return relative to average drawdown	1.97	-1.30	+3.27
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DAO vs. DUOL - Sharpe Ratio Comparison

The current DAO Sharpe Ratio is 0.52, which is higher than the DUOL Sharpe Ratio of -1.27. The chart below compares the historical Sharpe Ratios of DAO and DUOL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DAO	DUOL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.52	-1.27	+1.80
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.15	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.02	-0.08	+0.06

Drawdowns

DAO vs. DUOL - Drawdown Comparison

The maximum DAO drawdown since its inception was -93.46%, which is greater than DUOL's maximum drawdown of -83.35%. Use the drawdown chart below to compare losses from any high point for DAO and DUOL.

Drawdown Indicators

	DAO	DUOL	Difference
Max Drawdown Largest peak-to-trough decline	-93.46%	-83.35%	-10.11%
Max Drawdown (1Y) Largest decline over 1 year	-29.35%	-82.79%	+53.44%
Max Drawdown (3Y) Largest decline over 3 years	-44.77%	-83.35%	+38.58%
Max Drawdown (5Y) Largest decline over 5 years	-88.97%	—	—
Current Drawdown Current decline from peak	-75.27%	-80.14%	+4.87%
Average Drawdown Average peak-to-trough decline	-69.46%	-35.54%	-33.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	13.89%	60.80%	-46.91%

Volatility

DAO vs. DUOL - Volatility Comparison

Youdao, Inc. (DAO) has a higher volatility of 24.50% compared to Duolingo, Inc. (DUOL) at 17.63%. This indicates that DAO's price experiences larger fluctuations and is considered to be riskier than DUOL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DAO	DUOL	Difference
Volatility (1M) Calculated over the trailing 1-month period	24.50%	17.63%	+6.87%
Volatility (6M) Calculated over the trailing 6-month period	41.50%	41.01%	+0.49%
Volatility (1Y) Calculated over the trailing 1-year period	52.26%	62.36%	-10.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	89.39%	66.29%	+23.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	89.72%	66.29%	+23.43%

Dividends

DAO vs. DUOL - Dividend Comparison

Neither DAO nor DUOL has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

DAO vs. DUOL - Profitability Comparison

The chart below illustrates the profitability comparison between Youdao, Inc. and Duolingo, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

DAO - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Youdao, Inc. reported a gross profit of 602.29M and revenue of 1.35B. Therefore, the gross margin over that period was 44.7%.

DUOL - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Duolingo, Inc. reported a gross profit of 213.10M and revenue of 291.97M. Therefore, the gross margin over that period was 73.0%.

DAO - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Youdao, Inc. reported an operating income of 57.50M and revenue of 1.35B, resulting in an operating margin of 4.3%.

DUOL - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Duolingo, Inc. reported an operating income of 44.53M and revenue of 291.97M, resulting in an operating margin of 15.3%.

DAO - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Youdao, Inc. reported a net income of 38.58M and revenue of 1.35B, resulting in a net margin of 2.9%.

DUOL - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Duolingo, Inc. reported a net income of 43.46M and revenue of 291.97M, resulting in a net margin of 14.9%.

Frequently Asked Questions

Can I hold both DAO and DUOL in my portfolio?

DAO and DUOL have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DAO or DUOL?

DAO has higher volatility (24.50%) compared to DUOL (17.63%). In terms of maximum drawdown, DAO dropped -93.46% vs DUOL's -83.35%.

Which has better risk-adjusted returns?

DAO currently has the higher Sharpe Ratio (0.52 vs -1.27), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.