Comparing Yext (NYSE:YEXT) & Toast (NYSE:TOST)

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

Volatility & Risk

Toast has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Yext has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toast	$3.87 billion	3.14	-$246.00 million	($0.50)	-52.62
Yext	$404.32 million	2.06	-$2.63 million	($0.05)	-130.00

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toast	1	8	9	1	2.53
Yext	0	2	2	0	2.50

Toast currently has a consensus price target of $28.33, indicating a potential upside of 7.69%. Yext has a consensus price target of $7.31, indicating a potential upside of 12.50%. Given Yext’s higher possible upside, analysts plainly believe Yext is more favorable than Toast.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Toast	-3.10%	-11.27%	-6.80%
Yext	-1.68%	-3.35%	-1.07%

Institutional & Insider Ownership

82.9% of Toast shares are held by institutional investors. Comparatively, 71.0% of Yext shares are held by institutional investors. 13.3% of Toast shares are held by company insiders. Comparatively, 8.4% of Yext shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Toast beats Yext on 8 of the 14 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 Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company's platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.