Contrasting Toast (NYSE:TOST) and Adyen (OTCMKTS:ADYEY)

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

Valuation and Earnings

This table compares Adyen and Toast”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adyen	$2.67 billion	13.64	$1.20 billion	N/A	N/A
Toast	$6.15 billion	2.65	$342.00 million	$0.54	51.29

Adyen has higher earnings, but lower revenue than Toast.

Risk and Volatility

Adyen has a beta of 2.41, meaning that its share price is 141% more volatile than the S&P 500. Comparatively, Toast has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Adyen and Toast, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adyen	0	0	7	3	3.30
Toast	0	8	17	0	2.68

Toast has a consensus target price of $40.71, suggesting a potential upside of 46.99%. Given Toast’s higher probable upside, analysts clearly believe Toast is more favorable than Adyen.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Adyen	N/A	N/A	N/A
Toast	5.56%	18.86%	12.50%

Insider and Institutional Ownership

0.1% of Adyen shares are held by institutional investors. Comparatively, 82.9% of Toast shares are held by institutional investors. 12.1% of Toast shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Toast beats Adyen on 8 of the 13 factors compared between the two stocks.

About Adyen

Adyen N.V. operates a payments platform in Europe, the Middle East, Africa, North America, the Asia Pacific, Latin America. The company's platform integrates payments stack that include gateway, risk management, processing, issuing, acquiring, and settlement services. It offers a back-end infrastructure for authorizing. It serves digital, mobility, platforms and marketplace, retail, food and beverages, subscription, and hospital businesses. Adyen N.V. was incorporated in 2006 and is headquartered in Amsterdam, the Netherlands.

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.