Twilio (NYSE:TWLO) and Toast (NYSE:TOST) Head to Head Comparison

Twilio (NYSE:TWLO) and Toast (NYSE:TOST) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Risk & Volatility

Twilio has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Toast has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.

Earnings & Valuation

This table compares Twilio and Toast”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twilio	$5.07 billion	5.77	$33.83 million	$0.64	300.93
Toast	$6.15 billion	1.95	$342.00 million	$0.65	35.75

Toast has higher revenue and earnings than Twilio. Toast is trading at a lower price-to-earnings ratio than Twilio, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Twilio and Toast, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twilio	1	3	17	2	2.87
Toast	0	8	16	1	2.72

Twilio presently has a consensus price target of $193.65, suggesting a potential upside of 0.55%. Toast has a consensus price target of $37.84, suggesting a potential upside of 62.84%. Given Toast’s higher possible upside, analysts plainly believe Toast is more favorable than Twilio.

Institutional & Insider Ownership

84.3% of Twilio shares are held by institutional investors. Comparatively, 82.9% of Toast shares are held by institutional investors. 0.2% of Twilio shares are held by insiders. Comparatively, 12.1% of Toast shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Twilio and Toast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Twilio	1.96%	4.64%	3.76%
Toast	6.39%	20.86%	13.84%

Summary

Toast beats Twilio on 9 of the 15 factors compared between the two stocks.

About Twilio

Twilio Inc., together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication. It also offers software products to build direct, personalized relationships with their end users, such as segment, a platform that provides tools for first-party data by unifying real-time information collected; and engage, an automation platform for the delivery of omnichannel campaigns. Twilio Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

About Toast

Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, and India. The company offers software products for restaurant operations and point of sale, such as Toast POS, Toast now, multi-location management, kitchen display system, Toast mobile order and pay, Toast catering and events, Toast invoicing, Toast tables, and restaurant retail; and hardware products, including Toast flex, Toast flex for guest, Toast go 2, Toast tap, kiosks, and Delphi by Toast. It provides toast online ordering and toast takeout, first-party delivery toast delivery services, and third-party delivery integrations and orders hub; and loyalty, email marketing, and toast gift cards. In addition, the company offers payroll and team management, Sling by Toast, Toast pay card and payout, and tips manager, as well as partner-enabled products comprising insurance and benefits; supply chain and accounting products, such as xtraCHEF by toast; and financial technology solutions consisting of payment processing, toast capital, and purchase plans. Further, it offers reporting and analytics, Toast shop, and Toast partner connect and application programming interfaces. The company was formerly known as Opti Systems, Inc. and changed its name to Toast, Inc. in May 2012. Toast, Inc. was incorporated in 2011 and is headquartered in Boston, Massachusetts.