Scienjoy (NASDAQ:SJ) & Toast (NYSE:TOST) Critical Analysis

Toast (NYSE:TOST) and Scienjoy (NASDAQ:SJ) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Toast	-1.05%	-3.84%	-2.34%
Scienjoy	3.01%	4.55%	3.78%

Valuation and Earnings

This table compares Toast and Scienjoy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toast	$3.87 billion	4.60	-$246.00 million	($0.13)	-290.46
Scienjoy	$206.32 million	0.16	-$4.34 million	$0.16	5.31

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Toast and Scienjoy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toast	1	12	10	0	2.39
Scienjoy	0	0	0	0	0.00

Toast presently has a consensus price target of $35.27, indicating a potential downside of 6.59%. Given Toast’s stronger consensus rating and higher possible upside, research analysts clearly believe Toast is more favorable than Scienjoy.

Institutional and Insider Ownership

82.9% of Toast shares are owned by institutional investors. Comparatively, 0.3% of Scienjoy shares are owned by institutional investors. 13.3% of Toast shares are owned by insiders. Comparatively, 33.6% of Scienjoy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Toast has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500. Comparatively, Scienjoy has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

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.

About Scienjoy

Scienjoy Holding Corporation provides mobile live streaming platforms in the People's Republic of China. The company focuses on interactive show live streaming from broadcasters to users. Its platforms enable users to view and interact with broadcasters through online chat, virtual items, and playing games. The company operates live streaming platforms under the Showself Live Streaming, Lehai Live Streaming, Haixiu Live Streaming, BeeLive Live Streaming, and Hongle Live Streaming names. It also offers technical development and advisory services. The company was founded in 2011 and is based in Hangzhou City, the People's Republic of China.