CS Disco (NYSE:LAW) vs. CrowdStrike (NASDAQ:CRWD) Head-To-Head Review

CrowdStrike (NASDAQ:CRWDGet Rating) and CS Disco (NYSE:LAWGet Rating) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for CrowdStrike and CS Disco, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CrowdStrike 0 0 28 0 3.00
CS Disco 0 0 10 0 3.00

CrowdStrike currently has a consensus target price of $248.57, indicating a potential upside of 41.28%. CS Disco has a consensus target price of $45.58, indicating a potential upside of 145.73%. Given CS Disco’s higher probable upside, analysts clearly believe CS Disco is more favorable than CrowdStrike.

Institutional & Insider Ownership

63.0% of CrowdStrike shares are held by institutional investors. Comparatively, 79.4% of CS Disco shares are held by institutional investors. 6.8% of CrowdStrike shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares CrowdStrike and CS Disco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CrowdStrike -11.08% -14.50% -4.20%
CS Disco -26.05% -18.88% -14.12%

Valuation and Earnings

This table compares CrowdStrike and CS Disco’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CrowdStrike $1.45 billion 28.13 -$234.80 million ($0.79) -222.71
CS Disco $114.34 million 9.49 -$24.34 million ($0.78) -23.78

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

Summary

CrowdStrike beats CS Disco on 7 of the 12 factors compared between the two stocks.

About CrowdStrike (Get Rating)

CrowdStrike Holdings, Inc. provides cloud-delivered protection across endpoints and cloud workloads, identity, and data. It offers threat intelligence, managed security services, IT operations management, threat hunting, Zero Trust identity protection, and log management. The company primarily sells subscriptions to its Falcon platform and cloud modules through its direct sales team that leverages its network of channel partners. It serves customers worldwide. The company was incorporated in 2011 and is based in Austin, Texas.

About CS Disco (Get Rating)

CS Disco, Inc., a legal technology company, provides cloud-native and artificial intelligence-powered legal solutions for ediscovery, legal document review, and case management for enterprises, law firms, legal services providers, and governments. The company offers DISCO Ediscovery, a solution that automates 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. It also provides DISCO Review, an AI-powered document review solution, which consistently 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 tools are used in various legal matters comprising litigation, investigation, compliance, and diligence. CS Disco, Inc. was founded in 2012 and is headquartered in Austin, Texas.

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