Adyen (OTCMKTS:ADYEY) vs. Toast (NYSE:TOST) Critical Survey

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

Risk and Volatility

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

Insider and Institutional Ownership

82.9% of Toast shares are held by institutional investors. Comparatively, 0.1% of Adyen 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 is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toast	$6.15 billion	2.18	$342.00 million	$0.54	47.31
Adyen	$2.67 billion	12.97	$1.20 billion	N/A	N/A

Adyen has lower revenue, but higher earnings than Toast.

Analyst Recommendations

This is a summary of recent ratings and target prices for Toast and Adyen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toast	0	7	17	0	2.71
Adyen	0	0	7	3	3.30

Toast presently has a consensus price target of $40.71, suggesting a potential upside of 59.35%. Given Toast’s higher possible upside, research analysts clearly believe Toast is more favorable than Adyen.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Toast	5.56%	18.14%	12.09%
Adyen	N/A	N/A	N/A

Summary

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

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.

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.