Contrasting CS Disco (NYSE:LAW) and Squarespace (NYSE:SQSP)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CS Disco	$142.26 million	2.36	-$42.15 million	($0.54)	-10.35
Squarespace	$1.01 billion	6.33	-$7.08 million	($0.05)	-925.20

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

Insider and Institutional Ownership

58.0% of CS Disco shares are owned by institutional investors. Comparatively, 92.3% of Squarespace shares are owned by institutional investors. 22.3% of CS Disco shares are owned by insiders. Comparatively, 45.0% of Squarespace shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CS Disco	-19.88%	-14.18%	-12.37%
Squarespace	-0.45%	N/A	-0.52%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CS Disco	1	1	1	0	2.00
Squarespace	0	10	4	0	2.29

CS Disco currently has a consensus price target of $6.83, suggesting a potential upside of 22.24%. Squarespace has a consensus price target of $43.14, suggesting a potential downside of 6.75%. Given CS Disco’s higher probable upside, equities research analysts clearly believe CS Disco is more favorable than Squarespace.

Risk & Volatility

CS Disco has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500. Comparatively, Squarespace has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Summary

Squarespace beats CS Disco on 11 of the 14 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 Squarespace

Squarespace, Inc. operates platform for businesses and independent creators to build online presence, grow their brands, and manage their businesses across the internet in the United States and internationally. It enables users to manage their projects and businesses through websites, domains, e-commerce, marketing tools, scheduling, and hospitality services, as well as tools for managing a social media presence. It serves a range of industries and sizes from sole proprietors to enterprises. Squarespace, Inc. was founded in 2003 and is headquartered in New York, New York.