Comprehensive Stock Comparison
Compare Toast, Inc. (TOST) vs Palantir Technologies Inc. (PLTR) 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 | PLTR | 56.2% revenue growth vs TOST's 24.1% |
| Value | TOST | Lower P/E (22.4x vs 106.7x) |
| Quality / Margins | PLTR | 36.3% net margin vs TOST's 5.6% |
| Stability / Safety | TOST | Beta 1.51 vs PLTR's 1.97, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | PLTR | +61.6% vs TOST's -29.2% |
| Efficiency (ROA) | PLTR | 18.3% ROA vs TOST's 10.9%, ROIC 22.3% vs 30.8% |
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
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.
Palantir Technologies builds and operates advanced data analytics platforms that help government agencies and large enterprises integrate, analyze, and act on complex data. It generates revenue primarily through government contracts—particularly with defense and intelligence agencies—and commercial enterprise software subscriptions, with government work historically representing the majority of its business. The company's key advantage lies in its deep expertise in handling sensitive, classified data and its proprietary software platforms that have been battle-tested in national security applications for nearly two decades.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
PLTR leads in 2 of 6 categories (Financial Metrics, Total Returns). TOST leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
TOST and PLTR operate at a comparable scale, with $6.2B and $4.5B in trailing revenue. PLTR is the more profitable business, keeping 36.3% of every revenue dollar as net income compared to TOST's 5.6%. On growth, PLTR holds the edge at +70.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TOSTToast, Inc. | PLTRPalantir Technolo… |
|---|---|---|
| RevenueTrailing 12 months | $6.2B | $4.5B |
| EBITDAEarnings before interest/tax | $361M | $1.4B |
| Net IncomeAfter-tax profit | $342M | $1.6B |
| Free Cash FlowCash after capex | $608M | $2.1B |
| Gross MarginGross profit ÷ Revenue | +25.8% | +82.4% |
| Operating MarginEBIT ÷ Revenue | +4.8% | +31.6% |
| Net MarginNet income ÷ Revenue | +5.6% | +36.3% |
| FCF MarginFCF ÷ Revenue | +9.9% | +47.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +22.0% | +70.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +190.9% | +6.7% |
Valuation Metrics
At 48.8x trailing earnings, TOST trades at a 78% valuation discount to PLTR's 217.8x P/E. On an enterprise value basis, TOST's 34.9x EV/EBITDA is more attractive than PLTR's 216.8x.
| Metric | TOSTToast, Inc. | PLTRPalantir Technolo… |
|---|---|---|
| Market CapShares × price | $14.3B | $313.4B |
| Enterprise ValueMkt cap + debt − cash | $13.0B | $312.2B |
| Trailing P/EPrice ÷ TTM EPS | 48.77x | 217.76x |
| Forward P/EPrice ÷ next-FY EPS est. | 22.38x | 106.66x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 34.87x | 216.78x |
| Price / SalesMarket cap ÷ Revenue | 2.32x | 70.02x |
| Price / BookPrice ÷ Book value/share | 7.80x | 47.00x |
| Price / FCFMarket cap ÷ FCF | 23.49x | 149.19x |
Profitability & Efficiency
PLTR delivers a 21.7% return on equity — every $100 of shareholder capital generates $22 in annual profit, vs $16 for TOST. TOST carries lower financial leverage with a 0.02x debt-to-equity ratio, signaling a more conservative balance sheet compared to PLTR's 0.03x. On the Piotroski fundamental quality scale (0–9), PLTR scores 8/9 vs TOST's 7/9, reflecting strong financial health.
| Metric | TOSTToast, Inc. | PLTRPalantir Technolo… |
|---|---|---|
| ROE (TTM)Return on equity | +16.1% | +21.7% |
| ROA (TTM)Return on assets | +10.9% | +18.3% |
| ROICReturn on invested capital | +30.8% | +22.3% |
| ROCEReturn on capital employed | +15.9% | +21.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 8 |
| Debt / EquityFinancial leverage | 0.02x | 0.03x |
| Net DebtTotal debt minus cash | -$1.3B | -$1.2B |
| Cash & Equiv.Liquid assets | $1.4B | $1.4B |
| Total DebtShort + long-term debt | $40M | $229M |
| Interest CoverageEBIT ÷ Interest expense | — | — |
Total Returns (with DRIP)
A $10,000 investment in PLTR five years ago would be worth $55,296 today (with dividends reinvested), compared to $4,369 for TOST. Over the past 12 months, PLTR leads with a +61.6% total return vs TOST's -29.2%. The 3-year compound annual growth rate (CAGR) favors PLTR at 159.6% vs TOST's 13.0% — a key indicator of consistent wealth creation.
| Metric | TOSTToast, Inc. | PLTRPalantir Technolo… |
|---|---|---|
| YTD ReturnYear-to-date | -19.7% | -18.3% |
| 1-Year ReturnPast 12 months | -29.2% | +61.6% |
| 3-Year ReturnCumulative with dividends | +44.3% | +1649.9% |
| 5-Year ReturnCumulative with dividends | -56.3% | +453.0% |
| 10-Year ReturnCumulative with dividends | -56.3% | +1344.1% |
| CAGR (3Y)Annualised 3-year return | +13.0% | +159.6% |
Risk & Volatility
TOST is the less volatile stock with a 1.51 beta — it tends to amplify market swings less than PLTR's 1.97 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PLTR currently trades 66.1% from its 52-week high vs TOST's 55.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TOSTToast, Inc. | PLTRPalantir Technolo… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.51x | 1.97x |
| 52-Week HighHighest price in past year | $49.66 | $207.52 |
| 52-Week LowLowest price in past year | $24.35 | $66.12 |
| % of 52W HighCurrent price vs 52-week peak | +55.0% | +66.1% |
| RSI (14)Momentum oscillator 0–100 | 44.1 | 42.3 |
| Avg Volume (50D)Average daily shares traded | 9.2M | 39.1M |
Analyst Outlook
Wall Street rates TOST as "Buy" and PLTR as "Hold". Consensus price targets imply 45.8% upside for TOST (target: $40) vs 44.8% for PLTR (target: $199).
| Metric | TOSTToast, Inc. | PLTRPalantir Technolo… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $39.82 | $198.71 |
| # AnalystsCovering analysts | 29 | 24 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.7% | +0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Sep 21 | Feb 26 | Change |
|---|---|---|---|
| Toast, Inc. (TOST) | 100 | 50.42 | -49.6% |
| Palantir Technologi… (PLTR) | 100 | 607.32 | +507.3% |
Palantir Technologi… (PLTR) returned +453% over 5 years vs Toast, Inc. (TOST)'s -56%. A $10,000 investment in PLTR 5 years ago would be worth $55,296 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| Toast, Inc. (TOST) | $665M | $6.2B | +825.3% |
| Palantir Technologi… (PLTR) | $595M | $4.5B | +651.7% |
Palantir Technologies Inc.'s revenue grew from $595M (2018) to $4.5B (2025) — a 33.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| Toast, Inc. (TOST) | -31.4% | 5.6% | +117.7% |
| Palantir Technologi… (PLTR) | -97.4% | 36.3% | +137.3% |
Palantir Technologies Inc.'s net margin went from -97% (2018) to 36% (2025).
Chart 4P/E Ratio History — 3 Years
| Stock | 2023 | 2025 | Change |
|---|---|---|---|
| Palantir Technologi… (PLTR) | 188.1 | 282.1 | +50.0% |
Palantir Technologies Inc. has traded in a 188x–398x P/E range over 3 years; current trailing P/E is ~218x.
Chart 5EPS Growth — 10 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| Toast, Inc. (TOST) | -0.45 | 0.56 | +224.4% |
| Palantir Technologi… (PLTR) | -0.89 | 0.63 | +170.8% |
Palantir Technologies Inc.'s EPS grew from $-0.89 (2018) to $0.63 (2025).
Chart 6Free Cash Flow — 5 Years
Toast, Inc. generated $608M FCF in 2025 (+3676% vs 2021). Palantir Technologies Inc. generated $2B FCF in 2025 (+554% vs 2021).
TOST vs PLTR: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TOST or PLTR 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 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.
02Which has the better valuation — TOST or PLTR?
On trailing P/E, Toast, Inc. (TOST) is the cheapest at 48.8x versus Palantir Technologies Inc. at 217.8x. On forward P/E, Toast, Inc. is actually cheaper at 22.4x.
03Which is the better long-term investment — TOST or PLTR?
Over the past 5 years, Palantir Technologies Inc. (PLTR) delivered a total return of +453.0%, compared to -56.3% for Toast, Inc. (TOST). A $10,000 investment in PLTR five years ago would be worth approximately $55K today (assuming dividends reinvested). Over 10 years, the gap is even starker: PLTR returned +1344% 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.
04Which is safer — TOST or PLTR?
By beta (market sensitivity over 5 years), Toast, Inc. (TOST) is the lower-risk stock at 1.51β versus Palantir Technologies Inc.'s 1.97β — meaning PLTR is approximately 31% 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 3% for Palantir Technologies Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TOST or PLTR?
Palantir Technologies Inc. (PLTR) is the more profitable company, earning 36.3% net margin versus 5.6% for Toast, Inc. — meaning it keeps 36.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PLTR leads at 31.6% versus 5.0% for TOST. At the gross margin level — before operating expenses — PLTR leads at 82.4%, 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 TOST or PLTR more undervalued right now?
On forward earnings alone, Toast, Inc. (TOST) trades at 22.4x forward P/E versus 106.7x for Palantir Technologies Inc. — 84.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TOST: 45.8% to $39.82.
07Which pays a better dividend — TOST or PLTR?
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 TOST or PLTR better for a retirement portfolio?
For long-horizon retirement investors, Palantir Technologies Inc. (PLTR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1344% 10Y return). 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 (PLTR: +1344%, 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.
09What are the main differences between TOST and PLTR?
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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