Comparing Betawave (OTCMKTS:BWAV) & Toast (NYSE:TOST)

Toast (NYSE:TOST) and Betawave (OTCMKTS:BWAV) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Toast	0.40%	1.54%	0.93%
Betawave	N/A	N/A	N/A

Volatility & Risk

Toast has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500. Comparatively, Betawave has a beta of -7.39, indicating that its share price is 839% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Toast and Betawave, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toast	0	13	10	0	2.43
Betawave	0	0	0	0	0.00

Toast currently has a consensus price target of $40.09, suggesting a potential upside of 17.36%. Given Toast’s stronger consensus rating and higher probable upside, research analysts clearly believe Toast is more favorable than Betawave.

Institutional & Insider Ownership

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

Earnings & Valuation

This table compares Toast and Betawave”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toast	$4.96 billion	3.40	-$246.00 million	($0.01)	-3,416.00
Betawave	N/A	N/A	N/A	N/A	N/A

Betawave has lower revenue, but higher earnings than Toast.

Summary

Toast beats Betawave on 10 of the 10 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 Betawave

Betawave Corporation provides online advertising services for a portfolio of websites. It delivers advertising to audiences of highly-engaged users. The company has a network of websites in three online categories: immersive casual gaming, virtual world, and social play and entertainment. It specializes in helping brand marketers reach the attentive audiences on various Web sites through ad formats. It serves advertisers in various categories, including consumer packaged goods, entertainment, consumer electronics and software, and retail. The company's advertising in the publisher sites includes direct sales category comprising IAB graphical advertising and rich media/immersive advertising; and remnant inventory category, which are advertising inventory on a website that is not sold directly to an advertiser. It sells its inventory and marketing services through a sales and marketing organization in the United States. The company was formerly known as GoFish Corporation and changed its name to Betawave Corporation in January 2009. Betawave Corporation was incorporated in 2003 and is based in San Francisco, California.