Gen Digital Inc. (GEN) vs Toast, Inc. (TOST)

Gen Digital Inc. and Toast, Inc. are both Software Infrastructure companies. Toast, Inc. is the larger, with a market value of $18.7B against $14.9B — 1.3× the size. Gen Digital Inc. trades at the lower P/E: 13.9× against 38.0×. Toast, Inc. grew revenue faster over the last twelve months: 23.0% against 20.2%. Gen Digital Inc. has the higher net margin (20.7% vs 7.14%) and the lower return on invested capital (12.9% vs 81.1%). Across the 22 metrics below, Gen Digital Inc. leads on 12 and Toast, Inc. on 10.

Valuation

Metric GEN TOST Software Infrastructure median
P/E 13.89 38.04 28.38
P/S 2.85 2.68 2.98
P/B 5.45 8.92 2.93
Price to free cash flow 9.28 31.68 16.28
EV/EBITDA 8.45 28.56 13.92
EV/Sales 4.34 2.43 2.90
Earnings yield 7.20% 2.63% 0.14%
Free cash flow yield 10.78% 3.16% 1.24%

Profitability

Metric GEN TOST Software Infrastructure median
Gross margin 78.01% 26.72% 61.00%
Operating margin 41.68% 6.33% 0.00%
Net margin 20.73% 7.14% 0.00%
Free cash flow margin 30.71% 8.47% 1.67%
Return on equity 41.94% 25.16% 0.60%
Return on assets 6.58% 16.34% 0.00%
Return on invested capital 12.91% 81.14% 0.00%

Growth

Metric GEN TOST Software Infrastructure median
Revenue growth (TTM) 20.16% 23.04% 13.41%
EPS growth (last fiscal year) 52.43% 1,766.67% 27.10%
Revenue growth, 5-year CAGR 14.41% 49.53% 15.57%
Net income growth, 5-year CAGR 11.92% 0.00% 0.00%

Health

Metric GEN TOST Software Infrastructure median
Debt to equity 3.07 0.00 0.05
Current ratio 0.47 2.40 1.55
Net debt to EBITDA 2.98 (4.38) 0.08

Dividend

Metric GEN TOST Software Infrastructure median
Dividend yield 2.07% — 1.20%
Payout ratio 0.29 — 0.29

Size

Metric GEN TOST Software Infrastructure median
Market cap 14.86b 18.72b 752.37m

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