Synopsys (NASDAQ:SNPS – Get Free Report) and CS Disco (NYSE:LAW – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Earnings and Valuation
This table compares Synopsys and CS Disco”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Synopsys | $6.07 billion | 13.10 | $2.26 billion | $13.52 | 38.05 |
| CS Disco | $145.92 million | 1.72 | -$42.15 million | ($0.94) | -4.40 |
Analyst Ratings
This is a summary of current ratings and price targets for Synopsys and CS Disco, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Synopsys | 0 | 1 | 12 | 0 | 2.92 |
| CS Disco | 1 | 1 | 1 | 0 | 2.00 |
Synopsys presently has a consensus target price of $613.43, suggesting a potential upside of 19.24%. CS Disco has a consensus target price of $6.17, suggesting a potential upside of 48.99%. Given CS Disco’s higher possible upside, analysts plainly believe CS Disco is more favorable than Synopsys.
Volatility and Risk
Synopsys has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, CS Disco has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500.
Profitability
This table compares Synopsys and CS Disco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Synopsys | 36.12% | 20.48% | 13.51% |
| CS Disco | -38.51% | -22.30% | -19.44% |
Institutional & Insider Ownership
85.5% of Synopsys shares are held by institutional investors. Comparatively, 58.0% of CS Disco shares are held by institutional investors. 0.6% of Synopsys shares are held by company insiders. Comparatively, 16.1% 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 company is poised for long-term growth.
Summary
Synopsys beats CS Disco on 11 of the 14 factors compared between the two stocks.
About Synopsys
Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, MIPI, HDMI, and Bluetooth low energy applications; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers HAPS FPGA-based prototyping systems; virtual prototyping solutions; and Platform Architect solutions for SoC architecture analysis and optimization, as well as optical products, and mechatronic simulations. Further, it provides security and quality testing products, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. Additionally, the company provides intelligent orchestration solution, software risk manager, and black duck software composition analysis tools. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.
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.
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