CS Disco, Inc. (LAW) vs Ribbon Communications Inc. (RBBN)

CS Disco, Inc. and Ribbon Communications Inc. are both Software Application companies. CS Disco, Inc. and Ribbon Communications Inc. are of similar size ($307.6M and $283.1M). CS Disco, Inc. has negative trailing earnings, so its P/E is not meaningful; Ribbon Communications Inc. trades at 18.9×. CS Disco, Inc. grew revenue faster over the last twelve months: 12.9% against −7.62%. Ribbon Communications Inc. has the higher net margin (1.96% vs −24.2%) and the higher return on invested capital (−2.94% vs −142.9%). Across the 19 metrics below, Ribbon Communications Inc. leads on 12 and CS Disco, Inc. on 7.

Valuation

Metric LAW RBBN Software Application median
P/E n/m 18.89 24.69
P/S 1.69 0.38 2.74
P/B 2.35 0.77 2.83
Price to free cash flow n/m 44.32 17.55
EV/EBITDA n/m 19.13 14.66
EV/Sales 1.08 0.73 2.65
Earnings yield (14.38%) 5.29% 0.00%
Free cash flow yield (5.80%) 2.26% 1.87%

Profitability

Metric LAW RBBN Software Application median
Gross margin 74.83% 48.78% 67.03%
Operating margin (25.74%) (3.99%) 0.00%
Net margin (24.20%) 1.96% 0.00%
Free cash flow margin (9.80%) 0.85% 5.01%
Return on equity (31.34%) 4.09% 0.00%
Return on assets (24.79%) 1.37% 0.00%
Return on invested capital (142.88%) (2.94%) 0.00%

Growth

Metric LAW RBBN Software Application median
Revenue growth (TTM) 12.90% (7.62%) 12.48%
EPS growth (last fiscal year) 22.58% 170.97% 32.26%
Revenue growth, 5-year CAGR 18.04% 0.02% 14.21%
Net income growth, 5-year CAGR 0.00% (14.86%) 0.00%

Health

Metric LAW RBBN Software Application median
Debt to equity 0.00 0.84 0.02
Current ratio 3.77 1.31 1.52
Net debt to EBITDA 2.39 3.89 0.06

Dividend

Metric LAW RBBN Software Application median
Dividend yield — — 0.86%
Payout ratio — — 0.29

Size

Metric LAW RBBN Software Application median
Market cap 283.06m 307.57m 379.49m

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