Docebo (NASDAQ:DCBO) versus CS Disco (NYSE:LAW) Critical Review

CS Disco (NYSE:LAW) and Docebo (NASDAQ:DCBO) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares CS Disco and Docebo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CS Disco	$156.85 million	1.84	-$44.37 million	($0.63)	-7.06
Docebo	$242.69 million	2.85	$37.51 million	$1.14	24.20

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

Profitability

This table compares CS Disco and Docebo’s 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%
Docebo	12.98%	120.29%	16.26%

Risk and Volatility

CS Disco has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500. Comparatively, Docebo has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for CS Disco and Docebo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CS Disco	1	1	2	0	2.25
Docebo	0	4	10	1	2.80

CS Disco currently has a consensus target price of $8.00, indicating a potential upside of 79.90%. Docebo has a consensus target price of $30.18, indicating a potential upside of 9.39%. Given CS Disco’s higher probable upside, equities research analysts clearly believe CS Disco is more favorable than Docebo.

Insider & Institutional Ownership

58.1% of CS Disco shares are owned by institutional investors. Comparatively, 53.2% of Docebo shares are owned by institutional investors. 16.8% of CS Disco shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Docebo beats CS Disco on 11 of the 15 factors compared between the two stocks.

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.

About Docebo

Docebo Inc. operates as a learning management software company that provides artificial intelligence (AI)-powered learning platform in North America and internationally. It offers Learning Management System (LMS) to train internal and external workforces, partners, and customers. The company's cloud platform consists of a learning suite, which includes Docebo Learn LMS, a cloud-based learning platform that allows learning administrators to deliver personalized learning; Docebo Shape, an AI-based learning content creation tool, which enables learning administrators to turn internal and external resources into engaging, multilingual, and microlearning content to share across the business; Docebo Content that allows off-the-shelf learning content by partnering content specialist; Docebo Learning Impact, a learning measurement tool that enables administrators to prove and improve training programs; Docebo Learn Data, which gives a comprehensive view on learning data to business results; Docebo Connect that connects Docebo to custom tech stack and making integrations; and Docebo Flow that allows businesses to directly inject learning into the flow of work. It also offers Docebo for Salesforce, a native integration that leverages Salesforce's application programming interface and technology architecture to produce a learning experience; Docebo Embed that allows original equipment manufacturers to embed and re-sell Docebo as a part of their software; Docebo Mobile App Publisher product that allows companies to create and publish own branded version of Docebo Go.Learn mobile learning applications; Docebo Extended Enterprise which breeds customer education, partner enablement, and retention; Docebo Discover, Coach & Share that enhances the learning experience to create a culture of social learning; and Docebo for Microsoft Teams, that brings learning directly into Microsoft Teams. The company was founded in 2005 and is headquartered in Toronto, Canada.