Comparing Dynatrace (NYSE:DT) & CS Disco (NYSE:LAW)

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

Institutional & Insider Ownership

58.1% of CS Disco shares are held by institutional investors. Comparatively, 94.3% of Dynatrace shares are held by institutional investors. 16.8% of CS Disco shares are held by company insiders. Comparatively, 0.7% of Dynatrace shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares CS Disco and Dynatrace’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%
Dynatrace	7.22%	11.07%	7.02%

Volatility & Risk

CS Disco has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for CS Disco and Dynatrace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CS Disco	1	1	2	0	2.25
Dynatrace	0	7	24	0	2.77

CS Disco currently has a consensus price target of $8.00, suggesting a potential upside of 79.90%. Dynatrace has a consensus price target of $59.89, suggesting a potential downside of 1.92%. Given CS Disco’s higher probable upside, analysts plainly believe CS Disco is more favorable than Dynatrace.

Valuation and Earnings

This table compares CS Disco and Dynatrace”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	$156.85 million	1.84	-$44.37 million	($0.63)	-7.06
Dynatrace	$2.02 billion	8.74	$162.67 million	$0.50	122.13

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

Summary

Dynatrace 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 Dynatrace

Dynatrace, Inc. provides a security platform for multicloud environments in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates Dynatrace, a security platform, which provides application and microservices monitoring, runtime application security, infrastructure monitoring, log management and analytics, digital experience monitoring, digital business analytics, and cloud automation. Its platform allows its customers to modernize and automate IT operations, delivers software, and enhance user experiences. In addition, the company offers implementation, consulting, and training services. It markets its products through a combination of direct sales team and a network of partners, including resellers, system integrators, and managed service providers. It serves customers in various industries comprising banking, financial services, government, insurance, retail and wholesale, transportation, and software. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.