Head-To-Head Analysis: CS Disco (LAW) vs. Its Competitors

CS Disco (NYSE:LAW) is one of 954 public companies in the “Software” industry, but how does it contrast to its peers? We will compare CS Disco to related companies based on the strength of its risk, institutional ownership, dividends, analyst recommendations, earnings, valuation and profitability.

Insider & Institutional Ownership

58.1% of CS Disco shares are held by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are held by institutional investors. 16.8% of CS Disco shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for CS Disco and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CS Disco	1	1	2	0	2.25
CS Disco Competitors	5714	21419	44677	1492	2.57

CS Disco currently has a consensus price target of $8.00, indicating a potential upside of 52.38%. As a group, “Software” companies have a potential upside of 27.82%. Given CS Disco’s higher possible upside, equities research analysts clearly believe CS Disco is more favorable than its peers.

Earnings and Valuation

This table compares CS Disco and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CS Disco	$156.85 million	-$44.37 million	-8.33
CS Disco Competitors	$1.79 billion	$385.13 million	111.21

CS Disco’s peers have higher revenue and earnings than CS Disco. CS Disco is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

CS Disco has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500. Comparatively, CS Disco’s peers have a beta of 1.25, meaning that their average stock price is 25% more volatile than the S&P 500.

Profitability

This table compares CS Disco and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CS Disco	-24.20%	-26.58%	-19.89%
CS Disco Competitors	-612.31%	21.01%	-8.89%

Summary

CS Disco peers beat CS Disco on 9 of the 13 factors compared.

About CS Disco

CS Disco, Inc. provides cloud-native and artificial intelligence-powered legal solutions for legal hold, legal request, ediscovery, legal document review, and case management in the United States and internationally. It offers DISCO Request, a solution that automates response compliance for legal requests; and DISCO Ediscovery, a solution that automates the ediscovery process and saves legal departments from manual tasks associated with collecting, processing, enriching, searching, reviewing, analyzing, producing, and using enterprise data that is at issue in legal matters. The company also provides DISCO Hold, a solution that automates manual work to preserve data, notify custodians, track holds with a defensible audit trail, and collect data when ready; DISCO Review, an AI-powered document review solution that delivers legal document reviews; and DISCO Case Builder, a solution that allows legal professionals to collaborate with teams to build a compelling case by offering a single place to search, organize, and review witness testimony and other legal data. The company's solutions are used in various legal matters comprising litigation, investigation, compliance, and diligence. It serves enterprises, law firms, legal services providers, and governments. CS Disco, Inc. was founded in 2012 and is headquartered in Austin, Texas.