Compare Priority Technology Holdings, Inc. (PRTH) vs Toast, Inc. (TOST) Stock

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 Priority Technology Holdings, Inc. (PRTH) a "Buy" — based on 3 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, Priority Technology Holdings, Inc. is actually cheaper at 5.0x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Priority Technology Holdings, Inc. (PRTH) delivered a total return of -38.9%, compared to -56.3% for Toast, Inc. (TOST). A $10,000 investment in PRTH five years ago would be worth approximately $6K today (assuming dividends reinvested). Over 10 years, the gap is even starker: PRTH returned -43.4% versus TOST's -56.3%. 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 1.51β versus Priority Technology Holdings, Inc.'s 1.72β — meaning PRTH is approximately 14% more volatile than TOST relative to the S&P 500.

Toast, Inc. (TOST) is the more profitable company, earning 5.6% net margin versus 2.7% for Priority Technology Holdings, Inc. — meaning it keeps 5.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PRTH leads at 15.2% versus 5.0% for TOST. At the gross margin level — before operating expenses — PRTH leads at 37.3%, 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, Priority Technology Holdings, Inc. (PRTH) trades at 5.0x forward P/E versus 22.4x for Toast, Inc. — 17.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PRTH: 98.2% to $11.00.

In this comparison, PRTH (12.6% yield) pays a dividend. TOST does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Priority Technology Holdings, Inc. (PRTH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (12.6% yield). 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 (PRTH: -43.4%, 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.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: PRTH is a small-cap income-oriented stock; TOST is a mid-cap quality compounder stock. PRTH pays a dividend while TOST does not, making them suitable for different income and tax situations. 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.