CS Disco (NYSE:LAW – Get Free Report) and Karooooo (NASDAQ:KARO – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Insider & Institutional Ownership
58.0% of CS Disco shares are owned by institutional investors. 16.1% of CS Disco shares are owned by company insiders. Comparatively, 74.7% of Karooooo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares CS Disco and Karooooo”s gross 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 | 2.60 | -$55.77 million | ($1.01) | -6.29 |
| Karooooo | $249.96 million | 5.22 | $50.38 million | $1.79 | 23.58 |
Karooooo has higher revenue and earnings than CS Disco. CS Disco is trading at a lower price-to-earnings ratio than Karooooo, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CS Disco has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500. Comparatively, Karooooo has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for CS Disco and Karooooo, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CS Disco | 1 | 1 | 1 | 0 | 2.00 |
| Karooooo | 0 | 2 | 4 | 0 | 2.67 |
CS Disco presently has a consensus price target of $7.75, indicating a potential upside of 21.95%. Karooooo has a consensus price target of $58.25, indicating a potential upside of 38.02%. Given Karooooo’s stronger consensus rating and higher probable upside, analysts clearly believe Karooooo is more favorable than CS Disco.
Profitability
This table compares CS Disco and Karooooo’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% |
| Karooooo | 19.90% | 31.64% | 20.03% |
Summary
Karooooo beats CS Disco on 12 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 Karooooo
Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics. It provides Cartrack Field Service, a software application for management of field and on site workers; Business Intelligence for high-level view of fleet statistics; asset tracking for tracking and tracing moveable assets; asset recovery services that assists vehicle owners and insurance companies with the recovery of vehicles and other assets; and insurance telematics that allows insurers to tailor premiums for commercial and consumer customers using analytics; Protector, a safety package for consumer vehicles; and Car Watch, a mobile application that lets users track and watch their vehicles. In addition, the company offers specialist mobility solutions that include Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitate active credit management for asset-based vehicle finance; electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka, cartrack insurance agency, and on-demand rideshare taxi application, as well as smart IoT products. It provides its solutions through direct sales force to consumers and sole proprietors, small and medium-sized businesses, large enterprises, and other connected devices. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.
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