CS Disco (NYSE:LAW – Get Free Report) and Xperi (NYSE:XPER – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Valuation and Earnings
This table compares CS Disco and Xperi”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CS Disco | $167.12 million | 2.03 | -$44.37 million | ($0.63) | -8.29 |
| Xperi | $456.84 million | 0.57 | -$56.34 million | ($0.70) | -7.64 |
CS Disco has higher earnings, but lower revenue than Xperi. CS Disco is trading at a lower price-to-earnings ratio than Xperi, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
CS Disco has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500. Comparatively, Xperi has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.
Profitability
This table compares CS Disco and Xperi’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CS Disco | -24.20% | -26.58% | -19.89% |
| Xperi | -7.12% | 4.04% | 2.72% |
Analyst Ratings
This is a summary of recent ratings and target prices for CS Disco and Xperi, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CS Disco | 1 | 1 | 2 | 0 | 2.25 |
| Xperi | 1 | 1 | 2 | 0 | 2.25 |
CS Disco currently has a consensus target price of $8.00, indicating a potential upside of 53.17%. Xperi has a consensus target price of $11.00, indicating a potential upside of 105.80%. Given Xperi’s higher possible upside, analysts clearly believe Xperi is more favorable than CS Disco.
Institutional & Insider Ownership
58.0% of CS Disco shares are held by institutional investors. Comparatively, 94.3% of Xperi shares are held by institutional investors. 16.8% of CS Disco shares are held by insiders. Comparatively, 3.2% of Xperi shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Xperi beats CS Disco on 7 of the 12 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 Xperi
Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.
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