Cerence Inc. (CRNC) vs CS Disco, Inc. (LAW)

Cerence Inc. and CS Disco, Inc. are both Software Application companies. Cerence Inc. and CS Disco, Inc. are of similar size ($365.9M and $340.2M). Cerence Inc. grew revenue faster over the last twelve months: 25.8% against 12.9%. Cerence Inc. has the higher net margin (−4.97% vs −24.2%) and the higher return on invested capital (7.95% vs −142.9%). Across the 18 metrics below, Cerence Inc. leads on 13 and CS Disco, Inc. on 5.

Valuation

Metric CRNC LAW Software Application median
P/E n/m n/m 25.60
P/S 1.17 2.00 3.06
P/B 2.18 2.78 2.63
Price to free cash flow 4.60 n/m 18.02
EV/EBITDA 12.70 n/m 15.42
EV/Sales 1.51 1.39 2.96
Earnings yield (4.49%) (12.16%) 0.00%
Free cash flow yield 21.73% (4.90%) 1.94%

Profitability

Metric CRNC LAW Software Application median
Gross margin 78.69% 74.83% 67.03%
Operating margin 8.72% (25.74%) 0.00%
Net margin (4.97%) (24.20%) 0.00%
Free cash flow margin 25.41% (9.80%) 5.23%
Return on equity (9.56%) (31.34%) 0.00%
Return on assets (2.45%) (24.79%) 0.00%
Return on invested capital 7.95% (142.88%) 0.00%

Growth

Metric CRNC LAW Software Application median
Revenue growth (TTM) 25.84% 12.90% 12.43%
EPS growth (last fiscal year) 96.95% 22.58% 32.11%
Revenue growth, 5-year CAGR (5.32%) 18.04% 14.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CRNC LAW Software Application median
Debt to equity 1.04 0.00 0.03
Current ratio 2.08 3.77 1.51
Net debt to EBITDA 13.59 2.39 0.09

Dividend

Metric CRNC LAW Software Application median
Dividend yield — — 0.94%
Payout ratio — — 0.29

Size

Metric CRNC LAW Software Application median
Market cap 365.91m 340.18m 459.77m

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