Compare Remitly Global, Inc. (RELY) 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 Remitly Global, Inc. (RELY) 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.

On trailing P/E, Toast, Inc. (TOST) is the cheapest at 48.8x versus Remitly Global, Inc. at 53.9x. On forward P/E, Remitly Global, Inc. is actually cheaper at 14.5x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Toast, Inc. (TOST) delivered a total return of -56.3%, compared to -65.5% for Remitly Global, Inc. (RELY). 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 RELY's -65.5%. 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), Remitly Global, Inc. (RELY) is the lower-risk stock at 0.95β versus Toast, Inc.'s 1.51β — meaning TOST is approximately 59% more volatile than RELY relative to the S&P 500. On balance sheet safety, Toast, Inc. (TOST) carries a lower debt/equity ratio of 2% versus 22% for Remitly Global, Inc. — giving it more financial flexibility in a downturn.

Toast, Inc. (TOST) is the more profitable company, earning 5.6% net margin versus 4.2% for Remitly Global, 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 4.7% for RELY. At the gross margin level — before operating expenses — RELY leads at 59.5%, 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.

On forward earnings alone, Remitly Global, Inc. (RELY) trades at 14.5x forward P/E versus 22.4x for Toast, Inc. — 7.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TOST: 45.8% to $39.82.

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, Remitly Global, Inc. (RELY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.95)). 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 (RELY: -65.5%, 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. 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.