Comprehensive Stock Comparison
Compare Klarna Group plc (KLAR) 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 KLAR's 21.2% |
| Value | TOST | Lower P/E (22.4x vs 2023.9x) |
| Quality / Margins | TOST | 5.6% net margin vs KLAR's -9.3% |
| Stability / Safety | TOST | Beta 1.51 vs KLAR's 2.77, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | TOST | -29.2% vs KLAR's -70.4% |
| Efficiency (ROA) | TOST | 10.9% ROA vs KLAR's -1.3%, ROIC 30.8% vs -218.7% |
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
Klarna is a fintech company that provides buy-now-pay-later (BNPL) services and digital banking solutions to consumers and merchants. It generates revenue primarily from merchant fees — typically 3-4% of transaction value — and consumer interest on installment loans, along with banking fees and interchange income. Its key advantage is its seamless checkout integration with thousands of retailers and sophisticated AI-driven risk assessment that enables instant credit decisions with low default rates.
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
TOST leads in 3 of 6 categories (Profitability & Efficiency, Total Returns). KLAR leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
TOST is the larger business by revenue, generating $6.2B annually — 2.0x KLAR's $3.0B. TOST is the more profitable business, keeping 5.6% of every revenue dollar as net income compared to KLAR's -9.3%.
| Metric | KLARKlarna Group plc | TOSTToast, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $3.0B | $6.2B |
| EBITDAEarnings before interest/tax | -$109M | $361M |
| Net IncomeAfter-tax profit | -$279M | $342M |
| Free Cash FlowCash after capex | $3.2B | $608M |
| Gross MarginGross profit ÷ Revenue | +63.1% | +25.8% |
| Operating MarginEBIT ÷ Revenue | -8.2% | +4.8% |
| Net MarginNet income ÷ Revenue | -9.3% | +5.6% |
| FCF MarginFCF ÷ Revenue | +105.1% | +9.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | — | +190.9% |
Valuation Metrics
At 48.8x trailing earnings, TOST trades at a 98% valuation discount to KLAR's 2023.9x P/E. On an enterprise value basis, TOST's 34.9x EV/EBITDA is more attractive than KLAR's 39.2x.
| Metric | KLARKlarna Group plc | TOSTToast, Inc. |
|---|---|---|
| Market CapShares × price | $5.1B | $14.3B |
| Enterprise ValueMkt cap + debt − cash | $2.7B | $13.0B |
| Trailing P/EPrice ÷ TTM EPS | 2023.88x | 48.77x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 22.38x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 39.17x | 34.87x |
| Price / SalesMarket cap ÷ Revenue | 1.92x | 2.32x |
| Price / BookPrice ÷ Book value/share | 2.19x | 7.80x |
| Price / FCFMarket cap ÷ FCF | 9.44x | 23.49x |
Profitability & Efficiency
TOST delivers a 16.1% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $-11 for KLAR. TOST carries lower financial leverage with a 0.02x debt-to-equity ratio, signaling a more conservative balance sheet compared to KLAR's 0.35x.
| Metric | KLARKlarna Group plc | TOSTToast, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -10.6% | +16.1% |
| ROA (TTM)Return on assets | -1.3% | +10.9% |
| ROICReturn on invested capital | -2.2% | +30.8% |
| ROCEReturn on capital employed | -3.0% | +15.9% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.35x | 0.02x |
| Net DebtTotal debt minus cash | -$2.5B | -$1.3B |
| Cash & Equiv.Liquid assets | $3.2B | $1.4B |
| Total DebtShort + long-term debt | $791M | $40M |
| Interest CoverageEBIT ÷ Interest expense | 0.15x | — |
Total Returns (with DRIP)
A $10,000 investment in TOST five years ago would be worth $4,369 today (with dividends reinvested), compared to $2,959 for KLAR. Over the past 12 months, TOST leads with a -29.2% total return vs KLAR's -70.4%. The 3-year compound annual growth rate (CAGR) favors TOST at 13.0% vs KLAR's -33.4% — a key indicator of consistent wealth creation.
| Metric | KLARKlarna Group plc | TOSTToast, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -52.5% | -19.7% |
| 1-Year ReturnPast 12 months | -70.4% | -29.2% |
| 3-Year ReturnCumulative with dividends | -70.4% | +44.3% |
| 5-Year ReturnCumulative with dividends | -70.4% | -56.3% |
| 10-Year ReturnCumulative with dividends | -70.4% | -56.3% |
| CAGR (3Y)Annualised 3-year return | -33.4% | +13.0% |
Risk & Volatility
TOST is the less volatile stock with a 1.51 beta — it tends to amplify market swings less than KLAR's 2.77 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TOST currently trades 55.0% from its 52-week high vs KLAR's 23.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | KLARKlarna Group plc | TOSTToast, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.77x | 1.51x |
| 52-Week HighHighest price in past year | $57.20 | $49.66 |
| 52-Week LowLowest price in past year | $12.50 | $24.35 |
| % of 52W HighCurrent price vs 52-week peak | +23.7% | +55.0% |
| RSI (14)Momentum oscillator 0–100 | 27.0 | 44.1 |
| Avg Volume (50D)Average daily shares traded | 3.4M | 9.2M |
Analyst Outlook
Wall Street rates KLAR as "Buy" and TOST as "Buy". Consensus price targets imply 182.9% upside for KLAR (target: $38) vs 45.8% for TOST (target: $40).
| Metric | KLARKlarna Group plc | TOSTToast, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $38.36 | $39.82 |
| # AnalystsCovering analysts | 8 | 29 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.7% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Klarna Group plc (KLAR) | $390M | $2.7B | +584.5% |
| Toast, Inc. (TOST) | $665M | $6.2B | +825.3% |
Chart 2Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Klarna Group plc (KLAR) | 3.2% | 0.1% | -96.5% |
| Toast, Inc. (TOST) | -31.4% | 5.6% | +117.7% |
Chart 3EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Klarna Group plc (KLAR) | 0 | 0.01 | — |
| Toast, Inc. (TOST) | -0.45 | 0.56 | +224.4% |
Chart 4Free Cash Flow — 5 Years
Klarna Group plc generated $542M FCF in 2024 (+238% vs 2021). Toast, Inc. generated $608M FCF in 2025 (+3676% vs 2021).
KLAR vs TOST: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is KLAR or TOST a better buy right now?
Toast, Inc. (TOST) offers the better valuation at 48.8x trailing P/E (22.4x forward), making it the more compelling value choice. Analysts rate Klarna Group plc (KLAR) 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.
02Which has the better valuation — KLAR or TOST?
On trailing P/E, Toast, Inc. (TOST) is the cheapest at 48.8x versus Klarna Group plc at 2023.9x.
03Which is the better long-term investment — KLAR or TOST?
Over the past 5 years, Toast, Inc. (TOST) delivered a total return of -56.3%, compared to -70.4% for Klarna Group plc (KLAR). 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 KLAR's -70.4%. 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 — KLAR or TOST?
By beta (market sensitivity over 5 years), Toast, Inc. (TOST) is the lower-risk stock at 1.51β versus Klarna Group plc's 2.77β — meaning KLAR is approximately 84% more volatile than TOST relative to the S&P 500. On balance sheet safety, Toast, Inc. (TOST) carries a lower debt/equity ratio of 2% versus 35% for Klarna Group plc — giving it more financial flexibility in a downturn.
05Which has better profit margins — KLAR or TOST?
Toast, Inc. (TOST) is the more profitable company, earning 5.6% net margin versus 0.1% for Klarna Group plc — meaning it keeps 5.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TOST leads at 5.0% versus -4.5% for KLAR. At the gross margin level — before operating expenses — KLAR leads at 77.7%, 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 KLAR or TOST more undervalued right now?
Analyst consensus price targets imply the most upside for KLAR: 182.9% to $38.36.
07Which pays a better dividend — KLAR 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 KLAR or TOST better for a retirement portfolio?
For long-horizon retirement investors, Toast, Inc. (TOST) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Klarna Group plc (KLAR) carries a higher beta of 2.77 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TOST: -56.3%, KLAR: -70.4%), 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 KLAR 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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