TOST vs FOUR

For growth investors, Shift4 Payments, Inc.

(FOUR) is the stronger pick with 25. 5% revenue growth year-over-year, versus 24. 1% for Toast, Inc. (TOST). Shift4 Payments, Inc. (FOUR) offers the better valuation at 43. 4x trailing P/E (8. 4x forward), making it the more compelling value choice. Analysts rate Toast, Inc. (TOST) a "Buy" — based on 29 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, Shift4 Payments, Inc.

(FOUR) is the cheapest at 43. 4x versus Toast, Inc. at 52. 4x. On forward P/E, Shift4 Payments, Inc. is actually cheaper at 8. 4x.

Over the past 5 years, Shift4 Payments, Inc.

(FOUR) delivered a total return of -46. 4%, compared to -53. 0% for Toast, Inc. (TOST). Over 10 years, the gap is even starker: FOUR returned +39. 7% versus TOST's -53. 0%. 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 Shift4 Payments, Inc. 's 1. 51β — meaning FOUR is approximately 5% 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 2% for Shift4 Payments, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Shift4 Payments, Inc.

(FOUR) is pulling ahead at 25. 5% versus 24. 1% for Toast, Inc. (TOST). On earnings-per-share growth, the picture is similar: Toast, Inc. grew EPS 1639% year-over-year, compared to -64. 4% for Shift4 Payments, 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 2. 8% for Shift4 Payments, Inc. — meaning it keeps 5. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FOUR leads at 8. 4% versus 5. 0% for TOST. At the gross margin level — before operating expenses — FOUR leads at 34. 2%, 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, Shift4 Payments, Inc.

(FOUR) trades at 8. 4x forward P/E versus 23. 7x for Toast, Inc. — 15. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FOUR: 56. 6% to $73. 36.

In this comparison, FOUR (0.

7% yield) pays a dividend. TOST does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Shift4 Payments, Inc.

(FOUR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0. 7% yield). Both have compounded well over 10 years (FOUR: +39. 7%, TOST: -53. 0%), 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.

FOUR 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.