Tucows (NASDAQ:TCX – Get Free Report) and Toast (NYSE:TOST – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Tucows and Toast, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Tucows | 0 | 0 | 0 | 0 | N/A |
Toast | 1 | 8 | 9 | 1 | 2.53 |
Toast has a consensus target price of $28.33, indicating a potential upside of 1.63%. Given Toast’s higher probable upside, analysts clearly believe Toast is more favorable than Tucows.
Volatility & Risk
Earnings and Valuation
This table compares Tucows and Toast”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Tucows | $350.81 million | 0.62 | -$96.20 million | ($9.51) | -2.08 |
Toast | $4.39 billion | 2.88 | -$246.00 million | ($0.50) | -55.76 |
Tucows has higher earnings, but lower revenue than Toast. Toast is trading at a lower price-to-earnings ratio than Tucows, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Tucows and Toast’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Tucows | -26.01% | -490.14% | -11.58% |
Toast | -3.10% | -11.27% | -6.80% |
Insider and Institutional Ownership
73.6% of Tucows shares are held by institutional investors. Comparatively, 82.9% of Toast shares are held by institutional investors. 11.6% of Tucows shares are held by company insiders. Comparatively, 13.3% of Toast shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Toast beats Tucows on 12 of the 14 factors compared between the two stocks.
About Tucows
Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in North America and Europe. It operates in three segments: Ting, Wavelo and Tucows Domains. The Ting segment provides fiber and fixed wireless internet services. The Wavelo segment offers individual developer tools, subscription, billing management, network orchestration, and provisioning services. This segment also provides billing solutions under Platypus brand. The Tucows Domains segment offers name registration, as well as value added services under OpenSRS, eNom, Ascio, EPAG, and Hover brands. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.
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.
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