AGYS vs TOST

For growth investors, Toast, Inc.

(TOST) is the stronger pick with 24. 1% revenue growth year-over-year, versus 16. 1% for Agilysys, Inc. (AGYS). Toast, Inc. (TOST) offers the better valuation at 50. 6x trailing P/E (22. 8x forward), making it the more compelling value choice. Analysts rate Agilysys, Inc. (AGYS) a "Buy" — based on 8 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Toast, Inc.

(TOST) is the cheapest at 50. 6x versus Agilysys, Inc. at 83. 6x. On forward P/E, Toast, Inc. is actually cheaper at 22. 8x.

Over the past 5 years, Agilysys, Inc.

(AGYS) delivered a total return of +33. 8%, compared to -54. 7% for Toast, Inc. (TOST). Over 10 years, the gap is even starker: AGYS returned +525. 5% versus TOST's -54. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Agilysys, Inc.

(AGYS) is the lower-risk stock at 0. 87β versus Toast, Inc. 's 1. 44β — meaning TOST is approximately 65% more volatile than AGYS relative to the S&P 500. On balance sheet safety, Toast, Inc. (TOST) carries a lower debt/equity ratio of 2% versus 18% for Agilysys, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Toast, Inc.

(TOST) is pulling ahead at 24. 1% versus 16. 1% for Agilysys, Inc. (AGYS). On earnings-per-share growth, the picture is similar: Toast, Inc. grew EPS 1639% year-over-year, compared to -74. 1% for Agilysys, Inc.. Over a 3-year CAGR, TOST leads at 31. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Agilysys, Inc.

(AGYS) is the more profitable company, earning 8. 4% net margin versus 5. 6% for Toast, Inc. — meaning it keeps 8. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AGYS leads at 8. 2% versus 5. 0% for TOST. At the gross margin level — before operating expenses — AGYS leads at 62. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Toast, Inc.

(TOST) trades at 22. 8x forward P/E versus 41. 7x for Agilysys, Inc. — 18. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AGYS: 53. 2% to $105. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Agilysys, Inc.

(AGYS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 87), +525. 5% 10Y return). Both have compounded well over 10 years (AGYS: +525. 5%, TOST: -54. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.