GoDaddy Inc. (GDDY) vs Toast, Inc. (TOST)

GoDaddy Inc. and Toast, Inc. are both Software Infrastructure companies. Toast, Inc. is the larger, with a market value of $19.4B against $14.5B — 1.3× the size. GoDaddy Inc. trades at the lower P/E: 16.5× against 39.2×. Toast, Inc. grew revenue faster over the last twelve months: 23.0% against 7.41%. GoDaddy Inc. has the higher net margin (17.8% vs 7.14%) and the lower return on invested capital (30.2% vs 81.1%). Across the 21 metrics below, Toast, Inc. leads on 11 and GoDaddy Inc. on 10.

Valuation

Metric GDDY TOST Software Infrastructure median
P/E 16.50 39.18 25.33
P/S 2.88 2.76 3.11
P/B 2,190.36 9.19 2.91
Price to free cash flow 8.62 32.63 18.80
EV/EBITDA 12.72 29.51 14.46
EV/Sales 3.39 2.51 3.01
Earnings yield 6.06% 2.55% 0.00%
Free cash flow yield 11.60% 3.06% 0.27%

Profitability

Metric GDDY TOST Software Infrastructure median
Gross margin 63.80% 26.72% 59.21%
Operating margin 24.82% 6.33% 0.00%
Net margin 17.83% 7.14% 0.00%
Free cash flow margin 33.36% 8.47% 0.00%
Return on equity 442.86% 25.16% 0.00%
Return on assets 11.19% 16.34% 0.00%
Return on invested capital 30.15% 81.14% 0.00%

Growth

Metric GDDY TOST Software Infrastructure median
Revenue growth (TTM) 7.41% 23.04% 12.44%
EPS growth (last fiscal year) (3.57%) 1,766.67% 20.22%
Revenue growth, 5-year CAGR 8.34% 49.53% 15.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GDDY TOST Software Infrastructure median
Debt to equity 563.34 0.00 0.04
Current ratio 0.63 2.40 1.53
Net debt to EBITDA 2.17 (4.38) 0.06

Dividend

Metric GDDY TOST Software Infrastructure median
Dividend yield — — 1.06%
Payout ratio — — 0.29

Size

Metric GDDY TOST Software Infrastructure median
Market cap 14.53b 19.42b 644.05m

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