CS Disco (NYSE:LAW) versus Procore Technologies (NYSE:PCOR) Head to Head Analysis

Procore Technologies (NYSE:PCOR) and CS Disco (NYSE:LAW) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Volatility and Risk

Procore Technologies has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, CS Disco has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Procore Technologies and CS Disco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procore Technologies	0	6	13	0	2.68
CS Disco	0	1	1	0	2.50

Procore Technologies presently has a consensus price target of $83.06, suggesting a potential upside of 15.58%. CS Disco has a consensus price target of $6.75, suggesting a potential upside of 4.09%. Given Procore Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe Procore Technologies is more favorable than CS Disco.

Valuation and Earnings

This table compares Procore Technologies and CS Disco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procore Technologies	$1.15 billion	9.37	-$105.96 million	($0.96)	-74.86
CS Disco	$144.84 million	2.76	-$55.77 million	($0.94)	-6.90

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

Institutional and Insider Ownership

81.1% of Procore Technologies shares are held by institutional investors. Comparatively, 58.1% of CS Disco shares are held by institutional investors. 21.5% of Procore Technologies shares are held by insiders. Comparatively, 16.1% of CS Disco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Procore Technologies	-11.58%	-7.66%	-4.72%
CS Disco	-38.21%	-26.04%	-21.89%

Summary

Procore Technologies beats CS Disco on 10 of the 14 factors compared between the two stocks.

About Procore Technologies

Procore Technologies, Inc. engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company’s platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office. The company also provides Workforce Management, that helps contractors to schedule, track, and forecast labor productivity, enhance time management, communication with workforces, and manage profitability on construction projects; Financial Management, which provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data, linking the field, and the office in real-time; and Construction Intelligence, that allows customers to capture, manage, and learn from data for project and portfolio reporting, analytics, and artificial intelligence-guided workflows, as well as to monitor projects and drive informed decision-making for business needs. It serves owners, general contractors, and specialty contractors operating in the commercial, residential, industrial, and infrastructure segments of the construction industry. The company allow users to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team. Procore Technologies, Inc. was incorporated in 2002 and is headquartered in Carpinteria, California.

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.