Toast vs Tyler Technologies

Toast and Tyler Technologies are compared on this page to help readers understand how their business models, financial performance, and market context differ. The content is presented in a neutral, accessible way to aid analysis without providing investment guidance. This page highlights strategies, operations, and market positioning of both organisations. Educational content, not financial advice.

Toast and Tyler Technologies are compared on this page to help readers understand how their business models, financial performance, and market context differ. The content is presented in a neutral, ac...

Comparison Snapshot

Key Financial Metrics

TOST

Metric

TYL

$19.26B

Market Cap

$18.44B

44.42%

Potential Profit

44.41%

Buy

Analyst Rating

Buy

Investment Analysis

Toast

TOST

Pros

Toast operates a leading cloud-based digital platform for restaurant management across multiple countries, serving a broad customer base.
The company demonstrated strong recent revenue growth of 25%, with a sizable market capitalization around $22-23 billion.
Toast exhibits solid profitability metrics with return on assets near 19%, return on equity around 30%, and robust cash flow multiples.

Considerations

The stock trades at a high valuation with a trailing P/E above 100 and a forward P/E near 38, indicating expensive pricing relative to earnings.
Analyst price forecasts vary significantly, with some predicting potential stock price declines of over 30% by year-end 2025.
Toast’s beta near 1.95 suggests elevated volatility compared to the broader market, posing heightened risk for investors.

Tyler Technologies

TYL

Pros

Tyler Technologies specializes in software solutions for the public sector, a niche market with steady demand and limited direct competition.
The company has demonstrated consistent financial performance with a strong balance sheet and liquidity position.
Tyler benefits from long-term contracts and recurring revenue streams, supporting predictable cash flows and gradual growth.

Considerations

Its dependency on government and public sector budgets exposes Tyler to risks from regulatory changes and funding constraints.
Tyler faces execution risks related to integrating acquisitions and scaling its technology solutions across diverse client bases.
Market valuations for Tyler have appeared elevated recently, potentially limiting upside without significant growth catalysts.

About The Companies

Toast (TOST)

Toast Inc (TOST) is a cloud-native platform that provides point-of-sale (POS) systems, back-office software, and integrated payment processing tailored to restaurants and hospitality businesses. It combines hardware, subscription software and transaction services to build recurring revenue streams while aiming to increase customer lifetime value through online ordering, loyalty, inventory and workforce management tools. With a market capitalisation around $22.47bn, investors focus on revenue growth, margin expansion as hardware sales normalise, and improving free cash flow. Key considerations include customer retention, the split between subscription and payment-based revenue, competitive dynamics in POS and payments, and sensitivity to restaurant industry cycles and economic conditions. This is a general educational summary — not personalised financial advice. Values can rise or fall, and past performance is not a reliable indicator of future results. Investors should assess suitability, diversification and time horizon before making decisions.

Tyler Technologies (TYL)

Tyler Technologies provides essential integrated software and technology services to the public sector. The company helps local, state, and federal government organisations across the US to manage their operations more efficiently and transparently. Its offerings cover a wide range of functions, from back-office administrative tasks and public safety systems to courts, education, and property records. By creating 'end-to-end' solutions, Tyler aims to be a one-stop-shop for its clients' information technology needs. Its business is split into two main areas: Enterprise Software, which includes systems for critical functions, and Platform Technologies, which offers digital solutions and payment processing. This focus on a specific, vital sector has made it a notable name in government technology. As with any investment, its value can go down as well as up.

Which Baskets Do They Appear In?

Europe's Food Delivery Shake-Up

The likely EU approval of Prosus's €4.1 billion acquisition of Just Eat Takeaway.com is set to create a dominant force in Europe's food delivery market. This major consolidation creates an investment opportunity focused on companies benefiting from the industry's shifting competitive landscape and increased focus on technological efficiency.

Published: August 3, 2025

Explore Basket

Europe's Food Delivery Consolidation

Prosus's major acquisition of Just Eat Takeaway is set to reshape the European food delivery landscape, pending regulatory approval. This consolidation creates opportunities for other companies in the digital food ecosystem, including technology providers and logistics firms that can support these growing giants.

Published: August 2, 2025

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Riding The New Tech IPO Wave

Figma's blockbuster IPO has shattered a multi-year drought in major tech listings, signaling renewed investor appetite for high-growth software companies. This event may trigger a wave of public offerings from other venture-backed "unicorns," creating opportunities across the tech ecosystem.

Published: August 1, 2025

Explore Basket

Which Baskets Do They Appear In?

Europe's Food Delivery Shake-Up

The likely EU approval of Prosus's €4.1 billion acquisition of Just Eat Takeaway.com is set to create a dominant force in Europe's food delivery market. This major consolidation creates an investment opportunity focused on companies benefiting from the industry's shifting competitive landscape and increased focus on technological efficiency.

Published: August 3, 2025

Explore Basket

Europe's Food Delivery Consolidation

Prosus's major acquisition of Just Eat Takeaway is set to reshape the European food delivery landscape, pending regulatory approval. This consolidation creates opportunities for other companies in the digital food ecosystem, including technology providers and logistics firms that can support these growing giants.

Published: August 2, 2025

Explore Basket

Riding The New Tech IPO Wave

Figma's blockbuster IPO has shattered a multi-year drought in major tech listings, signaling renewed investor appetite for high-growth software companies. This event may trigger a wave of public offerings from other venture-backed "unicorns," creating opportunities across the tech ecosystem.

Published: August 1, 2025

Explore Basket

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Comparison Snapshot