Toast (NYSE:TOST) and Phunware (NASDAQ:PHUN) Financial Comparison

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

Risk and Volatility

Toast has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. Comparatively, Phunware has a beta of 2.42, meaning that its share price is 142% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toast	$4.12 billion	2.42	-$246.00 million	($0.50)	-44.04
Phunware	$4.83 million	9.26	-$52.78 million	N/A	N/A

Phunware has lower revenue, but higher earnings than Toast.

Institutional & Insider Ownership

82.9% of Toast shares are owned by institutional investors. Comparatively, 7.6% of Phunware shares are owned by institutional investors. 13.3% of Toast shares are owned by insiders. Comparatively, 1.2% of Phunware shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Toast	-6.02%	-21.45%	-12.99%
Phunware	-257.36%	-403.47%	-111.93%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Toast and Phunware, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toast	1	11	10	0	2.41
Phunware	0	0	3	0	3.00

Toast presently has a consensus target price of $26.14, indicating a potential upside of 18.72%. Phunware has a consensus target price of $19.00, indicating a potential upside of 251.20%. Given Phunware’s stronger consensus rating and higher possible upside, analysts clearly believe Phunware is more favorable than Toast.

Summary

Toast beats Phunware on 7 of the 12 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 Phunware

Phunware, Inc., together with its subsidiaries, provides integrated software platform that equips companies with the products, solutions, and services to engage, manage, and monetize their mobile application portfolios in the United States and internationally. The company's products and services include mobile software and application transaction solutions comprise integration of software development kit (SDK) licenses, which consists of analytics that offers data related to application use and engagement; content management that allows application administrators to create and manage app content in a cloud-based portal; alerts, notifications, and messaging, which enables brands to send messages; marketing automation that enables location-triggered messages and workflow; advertising; and location-based services, such as mapping, navigation, wayfinding, workflow, asset management, and policy enforcement. It is also involved in the integration of its SDK licenses into existing applications maintained by its customers, as well as custom application development and support services; and provision of cloud-based vertical solutions for healthcare, retail, sports, aviation, real estate, hospitality, education, and other applications, as well as application transactions, including re-occurring and one-time transactional media purchases for application discovery, user acquisition and audience building, audience engagement, and audience monetization. Phunware, Inc. was founded in 2009 and is headquartered in Austin, Texas.