Vivint Smart Home (NYSE:VVNT) & Toast (NYSE:TOST) Head-To-Head Review

Donovan LarsenJanuary 19, 2022

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Vivint Smart Home (NYSE:VVNT) and Toast (NYSE:TOST) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

79.5% of Vivint Smart Home shares are owned by institutional investors. Comparatively, 16.3% of Toast shares are owned by institutional investors. 1.6% of Vivint Smart Home shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Vivint Smart Home and Toast’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vivint Smart Home	$1.26 billion	1.24	-$595.20 million	($2.23)	-3.36
Toast	$823.13 million	14.88	-$248.20 million	N/A	N/A

Toast has lower revenue, but higher earnings than Vivint Smart Home.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Vivint Smart Home and Toast, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vivint Smart Home	0	2	4	0	2.67
Toast	0	4	6	0	2.60

Vivint Smart Home presently has a consensus price target of $17.17, indicating a potential upside of 128.89%. Toast has a consensus price target of $57.50, indicating a potential upside of 136.92%. Given Toast’s higher possible upside, analysts plainly believe Toast is more favorable than Vivint Smart Home.

Profitability

This table compares Vivint Smart Home and Toast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vivint Smart Home	-28.59%	N/A	-13.98%
Toast	N/A	N/A	N/A

Summary

Toast beats Vivint Smart Home on 6 of the 10 factors compared between the two stocks.

Vivint Smart Home Company Profile

Vivint Smart Home, Inc., together with its subsidiaries, engages in the sale, installation, servicing, and monitoring of smart home and security systems primarily in the United States and Canada. The company’s smart home platform includes cloud-enabled smart home operating systems; Vivint Assist, an AI-driven smart home automation and assistance software; software-enabled smart home devices; and tech-enabled services to educate, manage, and support the smart home. It also offers other devices, including control panel, security cameras and smoke alarms, door and window sensors, door locks, motion and tilt sensors, glass break detectors, key fobs, medical pendants, carbon monoxide detectors, flood sensors, and lamp modules. The company’s solutions enable subscribers to interact with various aspects of home with voice or mobile device, including engaging with people at front door, and viewing live and recorded video inside and outside homes; and control thermostats, locks, lights, and garage doors, as well as managing movement of families, friends, and strangers. As of March 31, 2020, its smart home platform had approximately 1.5 million subscribers and managed approximately 20 million in-home devices. It markets its products through direct-to-home, inside sales channels, and retail partnerships programs. The company was founded in 1999 and is headquartered in Provo, Utah.

Toast Company Profile

Toast Inc. builds software which helps restaurants manage online orders and dine-in order, operate an on-demand delivery network and integrate payments. Toast Inc. is based in Boston.