Epoxy (OTCMKTS:EPXY) versus CS Disco (NYSE:LAW) Critical Analysis

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

Analyst Recommendations

This is a summary of current ratings and price targets for CS Disco and Epoxy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CS Disco	1	1	1	0	2.00
Epoxy	0	0	0	0	0.00

CS Disco currently has a consensus price target of $9.00, indicating a potential upside of 39.21%. Given CS Disco’s stronger consensus rating and higher possible upside, equities analysts clearly believe CS Disco is more favorable than Epoxy.

Institutional & Insider Ownership

58.0% of CS Disco shares are held by institutional investors. 16.1% of CS Disco shares are held by company insiders. Comparatively, 0.2% of Epoxy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares CS Disco and Epoxy”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	$152.68 million	2.65	-$55.77 million	($1.01)	-6.40
Epoxy	N/A	N/A	N/A	N/A	N/A

Epoxy has lower revenue, but higher earnings than CS Disco.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CS Disco	-40.00%	-26.05%	-21.14%
Epoxy	N/A	N/A	N/A

Summary

CS Disco beats Epoxy on 6 of the 9 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 Epoxy

Epoxy, Inc. engages in the development and provision of a smart phone application. It serves as a platform for consumers to find business information, promotions, loyalty programs, and customer reviews. It also offers business owners to promote their products and services to the users. It operates under the Epoxy application brand. The company was founded by David Gasparine on November 13, 2007 and is headquartered in Las Vegas, NV.