CS Disco (NYSE:LAW) versus SS&C Technologies (NASDAQ:SSNC) Critical Review

CS Disco (NYSE:LAWGet Free Report) and SS&C Technologies (NASDAQ:SSNCGet Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Insider and Institutional Ownership

58.0% of CS Disco shares are held by institutional investors. Comparatively, 96.9% of SS&C Technologies shares are held by institutional investors. 15.6% of CS Disco shares are held by insiders. Comparatively, 15.4% of SS&C Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares CS Disco and SS&C Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CS Disco -38.51% -22.30% -19.44%
SS&C Technologies 12.93% 18.30% 6.90%

Risk and Volatility

CS Disco has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, SS&C Technologies has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Earnings & Valuation

This table compares CS Disco and SS&C Technologies”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CS Disco $144.84 million 1.87 -$42.15 million ($0.92) -4.89
SS&C Technologies $5.88 billion 3.47 $760.50 million $3.00 27.58

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

Analyst Recommendations

This is a breakdown of recent ratings for CS Disco and SS&C Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CS Disco 1 1 1 0 2.00
SS&C Technologies 0 0 5 1 3.17

CS Disco currently has a consensus price target of $6.17, indicating a potential upside of 37.19%. SS&C Technologies has a consensus price target of $97.50, indicating a potential upside of 17.82%. Given CS Disco’s higher possible upside, analysts plainly believe CS Disco is more favorable than SS&C Technologies.

Summary

SS&C Technologies beats CS Disco on 12 of the 15 factors compared between the two stocks.

About CS Disco

(Get Free Report)

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 SS&C Technologies

(Get Free Report)

SS&C Technologies Holdings, Inc. engages in the development and provision of software solutions to the financial services and healthcare industries. It operates through the following geographical segments: United States, Europe, Middle East and Africa, Asia Pacific and Japan, Canada, and the Americas, excluding the United States and Canada. Its products include advent genesis, antares, asset allocators, AWD, axys, BANC mall, BRIX, DST vision, evare, lightning, and moxy. The company was founded by William Charles Stone in March 1986 and is headquartered in Windsor, CT.

Receive News & Ratings for CS Disco Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CS Disco and related companies with MarketBeat.com's FREE daily email newsletter.