Comprehensive Stock Comparison
Compare DLocal Limited (DLO) vs Toast, Inc. (TOST) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | TOST | 24.1% revenue growth vs DLO's 14.7% |
| Value | DLO | Lower P/E (14.0x vs 22.4x) |
| Quality / Margins | DLO | 17.8% net margin vs TOST's 5.6% |
| Stability / Safety | DLO | Beta 1.29 vs TOST's 1.51 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | DLO | +33.5% vs TOST's -29.2% |
| Efficiency (ROA) | DLO | 12.1% ROA vs TOST's 10.9%, ROIC 59.4% vs 30.8% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
DLocal operates a cross-border payments platform that enables global merchants to accept payments and make payouts in emerging markets. It generates revenue primarily from transaction fees — taking a percentage of each payment processed through its platform — with additional income from foreign exchange spreads and other financial services. The company's key advantage is its deep local infrastructure in high-growth emerging markets, allowing it to navigate complex regulatory environments and payment methods that global competitors struggle to penetrate.
Toast is a cloud-based restaurant management platform that provides point-of-sale systems, payment processing, and operational software to eateries. It generates revenue primarily through subscription fees for its software platform (about 25% of revenue) and payment processing fees from restaurant transactions (roughly 70% of revenue). The company's competitive advantage lies in its integrated ecosystem—combining hardware, software, and payments—which creates high switching costs for restaurants once they adopt the full Toast system.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
DLO leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). TOST leads in 1 (Total Returns). 1 tied.
Financial Metrics (TTM)
TOST is the larger business by revenue, generating $6.2B annually — 6.4x DLO's $960M. DLO is the more profitable business, keeping 17.8% of every revenue dollar as net income compared to TOST's 5.6%. On growth, DLO holds the edge at +52.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DLODLocal Limited | TOSTToast, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $960M | $6.2B |
| EBITDAEarnings before interest/tax | $223M | $361M |
| Net IncomeAfter-tax profit | $171M | $342M |
| Free Cash FlowCash after capex | $152M | $608M |
| Gross MarginGross profit ÷ Revenue | +38.6% | +25.8% |
| Operating MarginEBIT ÷ Revenue | +20.8% | +4.8% |
| Net MarginNet income ÷ Revenue | +17.8% | +5.6% |
| FCF MarginFCF ÷ Revenue | +15.8% | +9.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +52.1% | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +88.1% | +190.9% |
Valuation Metrics
At 31.4x trailing earnings, DLO trades at a 36% valuation discount to TOST's 48.8x P/E. On an enterprise value basis, DLO's 10.5x EV/EBITDA is more attractive than TOST's 34.9x.
| Metric | DLODLocal Limited | TOSTToast, Inc. |
|---|---|---|
| Market CapShares × price | $2.0B | $14.3B |
| Enterprise ValueMkt cap + debt − cash | $1.7B | $13.0B |
| Trailing P/EPrice ÷ TTM EPS | 31.38x | 48.77x |
| Forward P/EPrice ÷ next-FY EPS est. | 13.96x | 22.38x |
| PEG RatioP/E ÷ EPS growth rate | 0.64x | — |
| EV / EBITDAEnterprise value multiple | 10.50x | 34.87x |
| Price / SalesMarket cap ÷ Revenue | 2.72x | 2.32x |
| Price / BookPrice ÷ Book value/share | 7.64x | 7.80x |
| Price / FCFMarket cap ÷ FCF | — | 23.49x |
Profitability & Efficiency
DLO delivers a 33.9% return on equity — every $100 of shareholder capital generates $34 in annual profit, vs $16 for TOST. TOST carries lower financial leverage with a 0.02x debt-to-equity ratio, signaling a more conservative balance sheet compared to DLO's 0.11x. On the Piotroski fundamental quality scale (0–9), TOST scores 7/9 vs DLO's 2/9, reflecting strong financial health.
| Metric | DLODLocal Limited | TOSTToast, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +33.9% | +16.1% |
| ROA (TTM)Return on assets | +12.1% | +10.9% |
| ROICReturn on invested capital | +59.4% | +30.8% |
| ROCEReturn on capital employed | +29.5% | +15.9% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 7 |
| Debt / EquityFinancial leverage | 0.11x | 0.02x |
| Net DebtTotal debt minus cash | -$371M | -$1.3B |
| Cash & Equiv.Liquid assets | $425M | $1.4B |
| Total DebtShort + long-term debt | $54M | $40M |
| Interest CoverageEBIT ÷ Interest expense | 5.06x | — |
Total Returns (with DRIP)
A $10,000 investment in TOST five years ago would be worth $4,369 today (with dividends reinvested), compared to $3,941 for DLO. Over the past 12 months, DLO leads with a +33.5% total return vs TOST's -29.2%. The 3-year compound annual growth rate (CAGR) favors TOST at 13.0% vs DLO's -5.1% — a key indicator of consistent wealth creation.
| Metric | DLODLocal Limited | TOSTToast, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -13.0% | -19.7% |
| 1-Year ReturnPast 12 months | +33.5% | -29.2% |
| 3-Year ReturnCumulative with dividends | -14.6% | +44.3% |
| 5-Year ReturnCumulative with dividends | -60.6% | -56.3% |
| 10-Year ReturnCumulative with dividends | -60.6% | -56.3% |
| CAGR (3Y)Annualised 3-year return | -5.1% | +13.0% |
Risk & Volatility
DLO is the less volatile stock with a 1.29 beta — it tends to amplify market swings less than TOST's 1.51 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. DLO currently trades 72.9% from its 52-week high vs TOST's 55.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | DLODLocal Limited | TOSTToast, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.29x | 1.51x |
| 52-Week HighHighest price in past year | $16.78 | $49.66 |
| 52-Week LowLowest price in past year | $7.61 | $24.35 |
| % of 52W HighCurrent price vs 52-week peak | +72.9% | +55.0% |
| RSI (14)Momentum oscillator 0–100 | 45.4 | 44.1 |
| Avg Volume (50D)Average daily shares traded | 1.0M | 9.2M |
Analyst Outlook
Wall Street rates DLO as "Buy" and TOST as "Buy". Consensus price targets imply 45.8% upside for TOST (target: $40) vs 38.9% for DLO (target: $17).
| Metric | DLODLocal Limited | TOSTToast, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $17.00 | $39.82 |
| # AnalystsCovering analysts | 13 | 29 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 2 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +5.0% | +0.7% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Oct 21 | Feb 26 | Change |
|---|---|---|---|
| DLocal Limited (DLO) | 100 | 24.95 | -75.0% |
| Toast, Inc. (TOST) | 85.67 | 50.42 | -41.1% |
Toast, Inc. (TOST) returned -56% over 5 years vs DLocal Limited (DLO)'s -61%.
Chart 2Revenue Growth — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| DLocal Limited (DLO) | $55M | $746M | +1249.2% |
| Toast, Inc. (TOST) | $665M | $6.2B | +825.3% |
Toast, Inc.'s revenue grew from $665M (2019) to $6.2B (2025) — a 44.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| DLocal Limited (DLO) | 28.2% | 16.1% | -42.8% |
| Toast, Inc. (TOST) | -31.4% | 5.6% | +117.7% |
Toast, Inc.'s net margin went from -31% (2019) to 6% (2025).
Chart 4P/E Ratio History — 4 Years
| Stock | 2021 | 2024 | Change |
|---|---|---|---|
| DLocal Limited (DLO) | 137.3 | 28.9 | -79.0% |
DLocal Limited has traded in a 29x–137x P/E range over 4 years; current trailing P/E is ~31x.
Chart 5EPS Growth — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| DLocal Limited (DLO) | 0.05 | 0.39 | +631.7% |
| Toast, Inc. (TOST) | -0.45 | 0.56 | +224.4% |
Toast, Inc.'s EPS grew from $-0.45 (2019) to $0.56 (2025).
Chart 6Free Cash Flow — 5 Years
DLocal Limited generated $-55M FCF in 2024 (-192% vs 2021). Toast, Inc. generated $608M FCF in 2025 (+3676% vs 2021).
DLO vs TOST: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is DLO or TOST a better buy right now?
DLocal Limited (DLO) offers the better valuation at 31.4x trailing P/E (14.0x forward), making it the more compelling value choice. Analysts rate DLocal Limited (DLO) a "Buy" — based on 13 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.
02Which has the better valuation — DLO or TOST?
On trailing P/E, DLocal Limited (DLO) is the cheapest at 31.4x versus Toast, Inc. at 48.8x. On forward P/E, DLocal Limited is actually cheaper at 14.0x.
03Which is the better long-term investment — DLO or TOST?
Over the past 5 years, Toast, Inc. (TOST) delivered a total return of -56.3%, compared to -60.6% for DLocal Limited (DLO). A $10,000 investment in TOST five years ago would be worth approximately $4K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TOST returned -56.3% versus DLO's -60.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — DLO or TOST?
By beta (market sensitivity over 5 years), DLocal Limited (DLO) is the lower-risk stock at 1.29β versus Toast, Inc.'s 1.51β — meaning TOST is approximately 17% more volatile than DLO relative to the S&P 500. On balance sheet safety, Toast, Inc. (TOST) carries a lower debt/equity ratio of 2% versus 11% for DLocal Limited — giving it more financial flexibility in a downturn.
05Which has better profit margins — DLO or TOST?
DLocal Limited (DLO) is the more profitable company, earning 16.1% net margin versus 5.6% for Toast, Inc. — meaning it keeps 16.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DLO leads at 18.8% versus 5.0% for TOST. At the gross margin level — before operating expenses — DLO leads at 39.5%, 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.
06Is DLO or TOST more undervalued right now?
On forward earnings alone, DLocal Limited (DLO) trades at 14.0x forward P/E versus 22.4x for Toast, Inc. — 8.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TOST: 45.8% to $39.82.
07Which pays a better dividend — DLO or TOST?
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.
08Is DLO or TOST better for a retirement portfolio?
For long-horizon retirement investors, DLocal Limited (DLO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.29)). Toast, Inc. (TOST) carries a higher beta of 1.51 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (DLO: -60.6%, TOST: -56.3%), 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.
09What are the main differences between DLO and TOST?
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.
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