Analyzing CS Disco (NYSE:LAW) and Upland Software (NASDAQ:UPLD)

Upland Software (NASDAQ:UPLD) and CS Disco (NYSE:LAW) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Volatility and Risk

Upland Software has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, CS Disco has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Upland Software	-18.50%	-46.06%	6.92%
CS Disco	-24.20%	-26.58%	-19.89%

Institutional & Insider Ownership

77.8% of Upland Software shares are held by institutional investors. Comparatively, 58.1% of CS Disco shares are held by institutional investors. 14.6% of Upland Software shares are held by company insiders. Comparatively, 16.8% of CS Disco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Upland Software 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
Upland Software	$216.88 million	0.05	-$38.90 million	($14.43)	-0.25
CS Disco	$156.85 million	1.76	-$44.37 million	($0.63)	-6.77

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

Analyst Recommendations

This is a breakdown of current recommendations for Upland Software and CS Disco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Upland Software	1	0	2	0	2.33
CS Disco	1	1	2	0	2.25

Upland Software presently has a consensus price target of $12.50, suggesting a potential upside of 253.11%. CS Disco has a consensus price target of $8.00, suggesting a potential upside of 87.66%. Given Upland Software’s stronger consensus rating and higher probable upside, analysts plainly believe Upland Software is more favorable than CS Disco.

Summary

Upland Software beats CS Disco on 8 of the 13 factors compared between the two stocks.

About Upland Software

Upland Software, Inc., together with its subsidiaries, provides cloud-based software applications under the Upland brand name in the United States, the United Kingdom, Canada, and internationally. It offers software applications that enable organizations to plan, manage and execute projects, and work in the areas of marketing, sales, contact center, knowledge management, project management, information technology, business operations, human resources, and legal. The company also provides professional services, such as implementation, data extraction, integration and configuration, and training services, as well as customer support services. It serves corporations, government agencies, and small and medium-sized businesses in the financial, consulting, technology, manufacturing, media, telecommunication, insurance, non-profit healthcare, life sciences, retail, and hospitality sectors. The company was formerly known as Silverback Enterprise Group, Inc. and changed its name to Upland Software, Inc. in November 2013. Upland Software, Inc. was incorporated in 2010 and is headquartered in Austin, Texas.

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.