Skillz (NYSE:SKLZ – Get Free Report) and Toast (NYSE:TOST – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Skillz and Toast, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Skillz | 1 | 0 | 2 | 0 | 2.33 |
| Toast | 0 | 11 | 10 | 0 | 2.48 |
Skillz presently has a consensus target price of $25.00, suggesting a potential upside of 197.62%. Toast has a consensus target price of $24.78, suggesting a potential upside of 18.05%. Given Skillz’s higher probable upside, equities analysts clearly believe Skillz is more favorable than Toast.
Institutional & Insider Ownership
Risk & Volatility
Skillz has a beta of 2.66, indicating that its share price is 166% more volatile than the S&P 500. Comparatively, Toast has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.
Profitability
This table compares Skillz and Toast’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Skillz | -145.87% | -53.35% | -26.37% |
| Toast | -11.33% | -34.23% | -21.21% |
Earnings and Valuation
This table compares Skillz and Toast’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Skillz | $269.71 million | 0.66 | -$438.88 million | ($13.45) | -0.62 |
| Toast | $2.73 billion | 4.12 | -$275.00 million | ($0.73) | -28.75 |
Toast has higher revenue and earnings than Skillz. Toast is trading at a lower price-to-earnings ratio than Skillz, indicating that it is currently the more affordable of the two stocks.
Summary
Toast beats Skillz on 10 of the 14 factors compared between the two stocks.
About Skillz
Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.
About Toast
Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States and Ireland. The company offers Toast POS, a software module that integrates payment processing with point of sale functionality; Toast Invoicing that allows restaurants to send invoices and collect payment; Toast Mobile Order & Pay, which allows guests to scan a QR code to browse the menu, order, and pay from mobile; Kitchen Display System software that connects the house with the kitchen staff; and Multi-Location Management, a tool to manage operations and configure menus across multiple locations and channels. It also provides Toast Flex, an hardware for on-counter order and pay; Toast Go, an integrated handheld POS device; Toast Tap, a card reader for accepting EMV-contactless payments; Toast Online Ordering & Toast TakeOut, an online ordering and consumer Toast TakeOut application; First-Party Delivery, a toast delivery service; POS integration for restaurants using third-party delivery services to order intake and eliminate the need for extra third-party tablets; and loyalty, email marketing, and Toast Gift Cards services. In addition, the company offers Payroll & Team Management solution for employee performance and satisfaction; Employee management tools, such as Sling for Toast that provide streamlined scheduling and team communication; Toast Pay Card & PayOut, which offers eligible workers instant access to a portion of their tips and wages; and Tips Manager solution that automates the tip-pooling process. Further, it provides xtraCHEF a suite of back-office tools, such as accounts payable automation, inventory management, ingredient price tracker, and recipe costing for restaurants; Payment Processing, capital funding, and purchase financing solutions; insights and reporting on real-time sales, menu, and labor data; Toast Partner Connect, a portal that allows customers to discover, select, and connect their restaurant to partners; and a suite of bi-directional application programming interfaces. The company was formerly known as Opti Systems, Inc. and changed its name to Toast, Inc. in 2012. Toast, Inc. was incorporated in 2011 and is headquartered in Boston, Massachusetts.
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