Head-To-Head Comparison: Toast (NYSE:TOST) and Digerati Technologies (OTCMKTS:DTGI)

Digerati Technologies (OTCMKTS:DTGI) and Toast (NYSE:TOST) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Digerati Technologies and Toast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digerati Technologies	-36.31%	N/A	-29.16%
Toast	-6.36%	-21.77%	-13.33%

Earnings and Valuation

This table compares Digerati Technologies and Toast’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digerati Technologies	$31.62 million	0.14	-$8.29 million	($0.07)	-0.37
Toast	$3.87 billion	2.82	-$246.00 million	($0.51)	-48.86

Digerati Technologies has higher earnings, but lower revenue than Toast. Toast is trading at a lower price-to-earnings ratio than Digerati Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

82.9% of Toast shares are held by institutional investors. 25.6% of Digerati Technologies shares are held by company insiders. Comparatively, 13.7% of Toast shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Digerati Technologies has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500. Comparatively, Toast has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Digerati Technologies and Toast, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digerati Technologies	0	0	0	0	N/A
Toast	1	9	11	0	2.48

Toast has a consensus target price of $23.20, indicating a potential downside of 6.90%. Given Toast’s higher possible upside, analysts clearly believe Toast is more favorable than Digerati Technologies.

Summary

Toast beats Digerati Technologies on 8 of the 13 factors compared between the two stocks.

About Digerati Technologies

Digerati Technologies, Inc., through its subsidiaries, provides a portfolio of Internet-based telephony products and services through its cloud application platform and session-based communication network in the United States. The company offers Internet broadband, fiber, mobile broadband, and cloud wide area network (WAN) or software-defined wide area network (SD-WAN) solutions; cloud communication services, including fully hosted IP/PBX, video conferencing, mobile applications, Voice over Internet Protocol (VoIP) transport, session initiation protocol (SIP) trunking, call center applications, auto attendant, voice and web conferencing, call recording, messaging, voicemail to email conversion, integrated mobility applications, and customized VoIP services; and remote network monitoring, data backup, and disaster recovery services, as well as enterprise-class data and connectivity solutions, such as cloud WAN or SD-WAN, fiber, mobile broadband, and Ethernet over copper services. It primarily serves small to medium-sized enterprise customers through distributors and value-added resellers. The company was formerly known as ATSI Communications Inc. and changed its name to Digerati Technologies, Inc. in March 2011. Digerati Technologies, Inc. was founded in 1993 and is headquartered in San Antonio, Texas.

About Toast

Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, and India. The company offers software products for restaurant operations and point of sale, such as Toast POS, Toast now, multi-location management, kitchen display system, Toast mobile order and pay, Toast catering and events, Toast invoicing, Toast tables, and restaurant retail; and hardware products, including Toast flex, Toast flex for guest, Toast go 2, Toast tap, kiosks, and Delphi by Toast. It provides toast online ordering and toast takeout, first-party delivery toast delivery services, and third-party delivery integrations and orders hub; and loyalty, email marketing, and toast gift cards. In addition, the company offers payroll and team management, Sling by Toast, Toast pay card and payout, and tips manager, as well as partner-enabled products comprising insurance and benefits; supply chain and accounting products, such as xtraCHEF by toast; and financial technology solutions consisting of payment processing, toast capital, and purchase plans. Further, it offers reporting and analytics, Toast shop, and Toast partner connect and application programming interfaces. The company was formerly known as Opti Systems, Inc. and changed its name to Toast, Inc. in May 2012. Toast, Inc. was incorporated in 2011 and is headquartered in Boston, Massachusetts.