Squarespace (NYSE:SQSP – Get Free Report) and CS Disco (NYSE:LAW – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Squarespace and CS Disco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Squarespace | -0.45% | N/A | -0.52% |
| CS Disco | -19.88% | -14.18% | -12.37% |
Institutional & Insider Ownership
92.3% of Squarespace shares are held by institutional investors. Comparatively, 58.0% of CS Disco shares are held by institutional investors. 45.0% of Squarespace shares are held by insiders. Comparatively, 22.3% of CS Disco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Squarespace | $1.01 billion | 6.35 | -$7.08 million | ($0.05) | -928.00 |
| CS Disco | $142.26 million | 2.42 | -$42.15 million | ($0.54) | -10.63 |
Squarespace has higher revenue and earnings than CS Disco. Squarespace is trading at a lower price-to-earnings ratio than CS Disco, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Squarespace has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, CS Disco has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Squarespace and CS Disco, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Squarespace | 0 | 10 | 4 | 0 | 2.29 |
| CS Disco | 1 | 1 | 1 | 0 | 2.00 |
Squarespace currently has a consensus price target of $43.14, indicating a potential downside of 7.03%. CS Disco has a consensus price target of $6.83, indicating a potential upside of 19.05%. Given CS Disco’s higher possible upside, analysts plainly believe CS Disco is more favorable than Squarespace.
Summary
Squarespace beats CS Disco on 11 of the 14 factors compared between the two stocks.
About Squarespace
Squarespace, Inc. operates platform for businesses and independent creators to build online presence, grow their brands, and manage their businesses across the internet in the United States and internationally. It enables users to manage their projects and businesses through websites, domains, e-commerce, marketing tools, scheduling, and hospitality services, as well as tools for managing a social media presence. It serves a range of industries and sizes from sole proprietors to enterprises. Squarespace, Inc. was founded in 2003 and is headquartered in New York, New York.
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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