Head to Head Survey: Abacus Global Management (NYSE:ABX) vs. Toast (NYSE:TOST)

Toast (NYSE:TOST) and Abacus Global Management (NYSE:ABX) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares Toast and Abacus Global Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toast	7.14%	23.90%	15.77%
Abacus Global Management	10.55%	21.03%	10.19%

Analyst Ratings

This is a summary of current recommendations and price targets for Toast and Abacus Global Management, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toast	0	9	17	0	2.65
Abacus Global Management	0	3	1	1	2.60

Toast currently has a consensus target price of $39.00, suggesting a potential upside of 5.23%. Abacus Global Management has a consensus target price of $12.00, suggesting a potential upside of 22.82%. Given Abacus Global Management’s higher possible upside, analysts clearly believe Abacus Global Management is more favorable than Toast.

Institutional and Insider Ownership

82.9% of Toast shares are held by institutional investors. 10.0% of Toast shares are held by company insiders. Comparatively, 46.4% of Abacus Global Management shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Toast and Abacus Global Management”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toast	$6.15 billion	3.10	$342.00 million	$0.78	47.51
Abacus Global Management	$235.24 million	4.06	$36.53 million	$0.28	34.89

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

Risk and Volatility

Toast has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Abacus Global Management has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Summary

Toast beats Abacus Global Management on 10 of the 15 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 Abacus Global Management

Abacus Life, Inc. operates as an alternative asset manager specializing in life insurance products. It purchases life insurance policies from consumers seeking liquidity and manages policies over time via trading, holding, and/or servicing. The company was founded in 2004 and is based in Orlando, Florida.