Head to Head Analysis: SS&C Technologies (NASDAQ:SSNC) and CS Disco (NYSE:LAW)

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

Earnings & Valuation

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

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

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.

Profitability

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

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

Risk and Volatility

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

Institutional and Insider Ownership

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

Analyst Recommendations

This is a summary of current recommendations for SS&C Technologies and CS Disco, as provided by MarketBeat.com.

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

SS&C Technologies presently has a consensus price target of $97.50, indicating a potential upside of 17.82%. CS Disco has a consensus price target of $6.17, indicating a potential upside of 37.19%. Given CS Disco’s higher possible upside, analysts clearly 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 SS&C Technologies

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.

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.