LSPD vs TOST

For growth investors, Toast, Inc.

(TOST) is the stronger pick with 24. 1% revenue growth year-over-year, versus 18. 4% for Lightspeed Commerce Inc. (LSPD). Toast, Inc. (TOST) offers the better valuation at 52. 4x trailing P/E (23. 7x forward), making it the more compelling value choice. Analysts rate Lightspeed Commerce Inc. (LSPD) a "Buy" — based on 15 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 forward P/E, Lightspeed Commerce Inc.

is actually cheaper at 20. 0x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Toast, Inc.

(TOST) delivered a total return of -53. 0%, compared to -84. 4% for Lightspeed Commerce Inc. (LSPD). Over 10 years, the gap is even starker: TOST returned -53. 0% versus LSPD's -70. 3%. 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), Toast, Inc.

(TOST) is the lower-risk stock at 1. 44β versus Lightspeed Commerce Inc. 's 1. 58β — meaning LSPD is approximately 10% more volatile than TOST relative to the S&P 500. On balance sheet safety, Lightspeed Commerce Inc. (LSPD) carries a lower debt/equity ratio of 1% versus 2% for Toast, 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 18. 4% for Lightspeed Commerce Inc. (LSPD). On earnings-per-share growth, the picture is similar: Toast, Inc. grew EPS 1639% year-over-year, compared to -305. 6% for Lightspeed Commerce 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.

Toast, Inc.

(TOST) is the more profitable company, earning 5. 6% net margin versus -62. 0% for Lightspeed Commerce Inc. — 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 -64. 6% for LSPD. At the gross margin level — before operating expenses — LSPD leads at 41. 8%, 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, Lightspeed Commerce Inc.

(LSPD) trades at 20. 0x forward P/E versus 23. 7x for Toast, Inc. — 3. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TOST: 35. 4% to $39. 76.

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, Toast, Inc.

(TOST) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Lightspeed Commerce Inc. (LSPD) carries a higher beta of 1. 58 — 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: -53. 0%, LSPD: -70. 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.

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.