Software - Application
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LAW vs DOCU
Revenue, margins, valuation, and 5-year total return — side by side.
Software - Application
LAW vs DOCU — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Software - Application | Software - Application |
| Market Cap | $252M | $9.53B |
| Revenue (TTM) | $162M | $3.22B |
| Net Income (TTM) | $-43M | $309M |
| Gross Margin | 74.9% | 79.4% |
| Operating Margin | -28.1% | 9.3% |
| Forward P/E | — | 12.7x |
| Total Debt | $0.00 | $185M |
| Cash & Equiv. | $20M | $602M |
LAW vs DOCU — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | Jul 21 | May 26 | Return |
|---|---|---|---|
| CS Disco, Inc. (LAW) | 100 | 10.0 | -90.0% |
| DocuSign, Inc. (DOCU) | 100 | 16.1 | -83.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LAW vs DOCU
Each card shows where this stock fits in a portfolio — not just who wins on paper.
LAW is the clearest fit if your priority is growth exposure.
- Rev growth 8.3%, EPS growth 22.6%, 3Y rev CAGR 5.1%
- 8.3% revenue growth vs DOCU's 8.2%
- +9.5% vs DOCU's -41.4%
DOCU carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- beta 0.95
- 21.3% 10Y total return vs LAW's -90.3%
- Lower volatility, beta 0.95, Low D/E 9.7%, current ratio 0.73x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 8.3% revenue growth vs DOCU's 8.2% | |
| Quality / Margins | 9.6% margin vs LAW's -26.3% | |
| Stability / Safety | Beta 0.95 vs LAW's 0.96 | |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | +9.5% vs DOCU's -41.4% | |
| Efficiency (ROA) | 7.7% ROA vs LAW's -25.2%, ROIC 15.0% vs -34.0% |
LAW vs DOCU — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
LAW vs DOCU — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
DOCU leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
DOCU is the larger business by revenue, generating $3.2B annually — 19.9x LAW's $162M. DOCU is the more profitable business, keeping 9.6% of every revenue dollar as net income compared to LAW's -26.3%. On growth, LAW holds the edge at +14.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $162M | $3.2B |
| EBITDAEarnings before interest/tax | -$41M | $525M |
| Net IncomeAfter-tax profit | -$43M | $309M |
| Free Cash FlowCash after capex | -$19M | $1.1B |
| Gross MarginGross profit ÷ Revenue | +74.9% | +79.4% |
| Operating MarginEBIT ÷ Revenue | -28.1% | +9.3% |
| Net MarginNet income ÷ Revenue | -26.3% | +9.6% |
| FCF MarginFCF ÷ Revenue | -11.9% | +32.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +14.3% | +7.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +21.1% | +12.8% |
Valuation Metrics
LAW leads this category, winning 3 of 3 comparable metrics.
Valuation Metrics
| Metric | ||
|---|---|---|
| Market CapShares × price | $252M | $9.5B |
| Enterprise ValueMkt cap + debt − cash | $232M | $9.1B |
| Trailing P/EPrice ÷ TTM EPS | -5.52x | 32.56x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 12.65x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 17.35x |
| Price / SalesMarket cap ÷ Revenue | 1.60x | 2.96x |
| Price / BookPrice ÷ Book value/share | 1.92x | 5.14x |
| Price / FCFMarket cap ÷ FCF | — | 9.00x |
Profitability & Efficiency
DOCU leads this category, winning 6 of 7 comparable metrics.
Profitability & Efficiency
DOCU delivers a 15.6% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $-33 for LAW. On the Piotroski fundamental quality scale (0–9), DOCU scores 6/9 vs LAW's 4/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | -32.7% | +15.6% |
| ROA (TTM)Return on assets | -25.2% | +7.7% |
| ROICReturn on invested capital | -34.0% | +15.0% |
| ROCEReturn on capital employed | -33.4% | +13.7% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 6 |
| Debt / EquityFinancial leverage | — | 0.10x |
| Net DebtTotal debt minus cash | -$20M | -$417M |
| Cash & Equiv.Liquid assets | $20M | $602M |
| Total DebtShort + long-term debt | $0 | $185M |
| Interest CoverageEBIT ÷ Interest expense | — | 131.77x |
Total Returns (Dividends Reinvested)
DOCU leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in DOCU five years ago would be worth $2,468 today (with dividends reinvested), compared to $970 for LAW. Over the past 12 months, LAW leads with a +9.5% total return vs DOCU's -41.4%. The 3-year compound annual growth rate (CAGR) favors DOCU at -0.8% vs LAW's -11.7% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -45.5% | -25.7% |
| 1-Year ReturnPast 12 months | +9.5% | -41.4% |
| 3-Year ReturnCumulative with dividends | -31.1% | -2.3% |
| 5-Year ReturnCumulative with dividends | -90.3% | -75.3% |
| 10-Year ReturnCumulative with dividends | -90.3% | +21.3% |
| CAGR (3Y)Annualised 3-year return | -11.7% | -0.8% |
Risk & Volatility
Evenly matched — LAW and DOCU each lead in 1 of 2 comparable metrics.
Risk & Volatility
DOCU is the less volatile stock with a 0.95 beta — it tends to amplify market swings less than LAW's 0.96 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. DOCU currently trades 50.9% from its 52-week high vs LAW's 43.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.67x | 0.88x |
| 52-Week HighHighest price in past year | $9.11 | $94.67 |
| 52-Week LowLowest price in past year | $2.45 | $40.16 |
| % of 52W HighCurrent price vs 52-week peak | +43.6% | +50.9% |
| RSI (14)Momentum oscillator 0–100 | 41.5 | 48.8 |
| Avg Volume (50D)Average daily shares traded | 376K | 4.3M |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates LAW as "Hold" and DOCU as "Hold". Consensus price targets imply 126.4% upside for LAW (target: $9) vs 42.5% for DOCU (target: $69).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $9.00 | $68.67 |
| # AnalystsCovering analysts | 11 | 28 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | +9.1% |
DOCU leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). LAW leads in 1 (Valuation Metrics). 1 tied.
LAW vs DOCU: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is LAW or DOCU a better buy right now?
For growth investors, CS Disco, Inc.
(LAW) is the stronger pick with 8. 3% revenue growth year-over-year, versus 8. 2% for DocuSign, Inc. (DOCU). DocuSign, Inc. (DOCU) offers the better valuation at 32. 6x trailing P/E (12. 7x forward), making it the more compelling value choice. Analysts rate CS Disco, Inc. (LAW) a "Hold" — based on 11 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — LAW or DOCU?
Over the past 5 years, DocuSign, Inc.
(DOCU) delivered a total return of -75. 3%, compared to -90. 3% for CS Disco, Inc. (LAW). Over 10 years, the gap is even starker: DOCU returned +20. 6% versus LAW's -90. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — LAW or DOCU?
By beta (market sensitivity over 5 years), CS Disco, Inc.
(LAW) is the lower-risk stock at 0. 67β versus DocuSign, Inc. 's 0. 88β — meaning DOCU is approximately 30% more volatile than LAW relative to the S&P 500.
04Which is growing faster — LAW or DOCU?
By revenue growth (latest reported year), CS Disco, Inc.
(LAW) is pulling ahead at 8. 3% versus 8. 2% for DocuSign, Inc. (DOCU). On earnings-per-share growth, the picture is similar: CS Disco, Inc. grew EPS 22. 6% year-over-year, compared to -70. 9% for DocuSign, Inc.. Over a 3-year CAGR, DOCU leads at 8. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
05Which has better profit margins — LAW or DOCU?
DocuSign, Inc.
(DOCU) is the more profitable company, earning 9. 6% net margin versus -28. 3% for CS Disco, Inc. — meaning it keeps 9. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DOCU leads at 9. 3% versus -30. 7% for LAW. At the gross margin level — before operating expenses — DOCU leads at 79. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is LAW or DOCU more undervalued right now?
Analyst consensus price targets imply the most upside for LAW: 126.
4% to $9. 00.
07Which pays a better dividend — LAW or DOCU?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is LAW or DOCU better for a retirement portfolio?
For long-horizon retirement investors, CS Disco, Inc.
(LAW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 67)). Both have compounded well over 10 years (LAW: -90. 0%, DOCU: +20. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between LAW and DOCU?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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