Shopify vs Toast Which Is More Lucrative?

Shopify and Toast are two popular companies in the e-commerce and restaurant technology industries, respectively. Both stocks have seen significant growth in recent years, attracting investors looking to capitalize on their success. Shopify is a leading e-commerce platform, boasting a strong track record of revenue growth and profitability. On the other hand, Toast is a rising star in the restaurant technology sector, offering innovative solutions for restaurants to streamline operations and enhance customer experience. Investors should carefully evaluate both stocks' potential for long-term growth and profitability before making investment decisions.

Shopify or Toast?

When comparing Shopify and Toast, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Shopify and Toast.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Shopify has a dividend yield of -%, while Toast has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Shopify reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Toast reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Shopify P/E ratio at 106.97 and Toast's P/E ratio at -438.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Shopify P/B ratio is 14.62 while Toast's P/B ratio is 15.12.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Shopify has seen a 5-year revenue growth of 4.42%, while Toast's is 4.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Shopify's ROE at 14.85% and Toast's ROE at -3.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $113.44 for Shopify and $37.87 for Toast. Over the past year, Shopify's prices ranged from $48.56 to $120.72, with a yearly change of 148.60%. Toast's prices fluctuated between $16.13 and $44.12, with a yearly change of 173.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.