Toast (NYSE:TOST) and Bilibili (NASDAQ:BILI) Financial Analysis

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toast	$3.87 billion	3.13	-$246.00 million	($0.50)	-53.37
Bilibili	$3.19 billion	2.03	-$679.21 million	($1.64)	-9.56

Toast has higher revenue and earnings than Bilibili. Toast is trading at a lower price-to-earnings ratio than Bilibili, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Toast and Bilibili’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%
Bilibili	-21.34%	-28.12%	-12.50%

Institutional & Insider Ownership

82.9% of Toast shares are owned by institutional investors. Comparatively, 16.1% of Bilibili shares are owned by institutional investors. 13.3% of Toast shares are owned by company insiders. Comparatively, 22.2% of Bilibili shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Toast has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, Bilibili has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Toast and Bilibili, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toast	1	10	9	0	2.40
Bilibili	1	7	2	0	2.10

Toast currently has a consensus price target of $25.80, indicating a potential downside of 3.32%. Bilibili has a consensus price target of $15.37, indicating a potential downside of 2.00%. Given Bilibili’s higher probable upside, analysts clearly believe Bilibili is more favorable than Toast.

Summary

Toast beats Bilibili on 10 of the 14 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 Bilibili

Bilibili Inc. provides online entertainment services for the young generations in the People's Republic of China. It offers a range of digital content, including professional user generated videos, mobile games, and value-added services, such as live broadcasting, occupationally generated videos, audio drama on Maoer, and comics on Bilibili Comic. The company also provides advertising services; and IP derivatives and other services. In addition, it engages in the business and technology development activities; e-commerce business; and video, comics, and game distribution activities. Bilibili Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.