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

Scienjoy (NASDAQ:SJ) and Toast (NYSE:TOST) are both unclassified companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Insider and Institutional Ownership

0.3% of Scienjoy shares are held by institutional investors. Comparatively, 82.9% of Toast shares are held by institutional investors. 33.6% of Scienjoy shares are held by insiders. Comparatively, 13.3% of Toast shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Scienjoy and Toast, as provided by MarketBeat.com.

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

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

Profitability

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

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

Risk and Volatility

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

Earnings and Valuation

This table compares Scienjoy and Toast”s top-line revenue, earnings per share and valuation.

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

Scienjoy has higher earnings, but lower revenue 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.

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.

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.