Head to Head Survey: CS Disco (NYSE:LAW) & Oracle (NYSE:ORCL)

Oracle (NYSE:ORCL) and CS Disco (NYSE:LAW) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oracle	$71.78 billion	5.41	$17.09 billion	$6.38	20.13
CS Disco	$171.54 million	2.33	-$44.37 million	($0.49)	-12.44

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

Institutional & Insider Ownership

42.4% of Oracle shares are held by institutional investors. Comparatively, 58.0% of CS Disco shares are held by institutional investors. 38.4% of Oracle shares are held by insiders. Comparatively, 16.8% of CS Disco shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oracle	26.36%	48.85%	7.93%
CS Disco	-18.54%	-25.85%	-19.25%

Analyst Ratings

This is a summary of current ratings and recommmendations for Oracle and CS Disco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oracle	3	5	37	1	2.78
CS Disco	1	1	2	0	2.25

Oracle presently has a consensus target price of $249.27, suggesting a potential upside of 94.05%. CS Disco has a consensus target price of $8.00, suggesting a potential upside of 31.26%. Given Oracle’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Oracle is more favorable than CS Disco.

Risk & Volatility

Oracle has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, CS Disco has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500.

Summary

Oracle beats CS Disco on 13 of the 15 factors compared between the two stocks.

About Oracle

Oracle Corporation is a technology company that develops and provides database software, cloud services, and enterprise applications. Its products help organizations manage data, run business operations, and build and deploy applications. Oracle’s offerings include Oracle Database, Oracle Cloud Infrastructure, and cloud-based applications for functions such as finance, human resources, supply chain management, and customer experience. The company also provides software support, consulting, and related services.

About CS Disco

CS Disco, Inc. provides cloud-based legal technology to help law firms and corporate legal departments manage litigation and investigations. Its software supports e-discovery, the process of identifying, collecting, processing and reviewing electronically stored information for legal matters. The company’s offerings include tools for legal holds and document review, along with analytics and artificial intelligence features designed to help legal teams organize large volumes of information and find relevant material.