Head to Head Analysis: Consensus Cloud Solutions (NASDAQ:CCSI) and Toast (NYSE:TOST)

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

Insider and Institutional Ownership

93.9% of Consensus Cloud Solutions shares are held by institutional investors. Comparatively, 82.9% of Toast shares are held by institutional investors. 1.9% of Consensus Cloud Solutions shares are held by insiders. Comparatively, 12.1% of Toast shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Consensus Cloud Solutions and Toast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consensus Cloud Solutions	24.17%	-579.06%	14.35%
Toast	5.56%	18.14%	12.09%

Risk and Volatility

Consensus Cloud Solutions has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Toast has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Earnings & Valuation

This table compares Consensus Cloud Solutions and Toast”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consensus Cloud Solutions	$349.70 million	1.28	$84.53 million	$4.35	5.46
Toast	$6.15 billion	2.26	$342.00 million	$0.54	49.05

Toast has higher revenue and earnings than Consensus Cloud Solutions. Consensus Cloud Solutions 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 recent ratings for Consensus Cloud Solutions and Toast, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consensus Cloud Solutions	0	1	2	0	2.67
Toast	0	8	17	0	2.68

Consensus Cloud Solutions currently has a consensus target price of $37.50, indicating a potential upside of 57.96%. Toast has a consensus target price of $39.88, indicating a potential upside of 50.55%. Given Consensus Cloud Solutions’ higher probable upside, analysts plainly believe Consensus Cloud Solutions is more favorable than Toast.

Summary

Toast beats Consensus Cloud Solutions on 9 of the 14 factors compared between the two stocks.

About Consensus Cloud Solutions

Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. The company offers eFax Corporate, a digital cloud-fax technology; Unite, a single platform that allows the user to choose between various protocols to send and receive healthcare information and can integrate into an existing electronic health record system or stand-alone if no EHR is present. It also offers jsign, an electronic and digital signature solution; Conductor, an interface engine and interoperability platform that provides integration technology; Clarity that transforms unstructured documents into structured actionable data; and eFax, an online faxing solution, as well as other products under the MyFax, MetroFax, Sfax, and SRfax brands. In addition, the company provides ECFax, an Corporate eFax. It serves healthcare, government, financial services, law, and education sectors. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.

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.