CS Disco, Inc. (LAW) vs Materialise NV (MTLS)

CS Disco, Inc. and Materialise NV are both Software Application companies. CS Disco, Inc. and Materialise NV are of similar size ($383.9M and $364.9M). CS Disco, Inc. has negative trailing earnings, so its P/E is not meaningful; Materialise NV trades at 26.2×. CS Disco, Inc. grew revenue faster over the last twelve months: 12.4% against 5.15%. Materialise NV has the higher net margin (4.63% vs −18.5%) and the higher return on invested capital (3.38% vs −91.9%). Across the 18 metrics below, Materialise NV leads on 12 and CS Disco, Inc. on 6.

Valuation

Metric LAW MTLS Software Application median
P/E n/m 26.22 26.44
P/S 2.15 1.26 2.90
P/B 3.07 1.32 2.60
Price to free cash flow n/m 16.75 17.04
EV/EBITDA n/m 7.97 15.48
EV/Sales 1.59 0.93 3.00
Earnings yield (8.62%) 3.81% 0.20%
Free cash flow yield (5.35%) 5.97% 1.96%

Profitability

Metric LAW MTLS Software Application median
Gross margin 74.83% 57.42% 67.34%
Operating margin (19.91%) 3.36% 0.00%
Net margin (18.54%) 4.63% 0.00%
Free cash flow margin (11.50%) 7.51% 5.77%
Return on equity (25.38%) 4.88% 0.00%
Return on assets (18.81%) 2.93% 0.00%
Return on invested capital (91.93%) 3.38% 0.00%

Growth

Metric LAW MTLS Software Application median
Revenue growth (TTM) 12.35% 5.15% 12.12%
EPS growth (last fiscal year) 22.58% (40.00%) 32.44%
Revenue growth, 5-year CAGR 18.04% 9.23% 14.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LAW MTLS Software Application median
Debt to equity 0.00 0.25 0.04
Current ratio 3.54 2.52 1.53
Net debt to EBITDA 2.39 (2.49) 0.09

Dividend

Metric LAW MTLS Software Application median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric LAW MTLS Software Application median
Market cap 364.85m 383.88m 383.88m

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