Contrasting Brookfield Wealth Solutions (NYSE:BNT) and Toast (NYSE:TOST)

Toast (NYSE:TOST) and Brookfield Wealth Solutions (NYSE:BNT) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

82.9% of Toast shares are owned by institutional investors. Comparatively, 20.3% of Brookfield Wealth Solutions shares are owned by institutional investors. 10.0% of Toast shares are owned by company insiders. Comparatively, 1.0% of Brookfield Wealth Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Toast and Brookfield Wealth Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toast	7.14%	23.90%	15.77%
Brookfield Wealth Solutions	0.15%	0.10%	0.01%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toast	$6.15 billion	2.56	$342.00 million	$0.78	39.36
Brookfield Wealth Solutions	$11.63 billion	1.07	$766.00 million	$0.26	141.81

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

Risk and Volatility

Toast has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Brookfield Wealth Solutions has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Toast and Brookfield Wealth Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toast	0	11	16	0	2.59
Brookfield Wealth Solutions	0	1	0	0	2.00

Toast currently has a consensus target price of $39.12, suggesting a potential upside of 27.41%. Given Toast’s stronger consensus rating and higher possible upside, analysts plainly believe Toast is more favorable than Brookfield Wealth Solutions.

Summary

Toast beats Brookfield Wealth Solutions on 11 of the 14 factors compared between the two stocks.

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 Brookfield Wealth Solutions

Brookfield Wealth Solutions is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Through our operating subsidiaries, we offer a broad range of insurance products and services, including annuities, personal and commercial property and casualty insurance and life insurance.The company was incorporated in 2020 and is headquartered in Pembroke, Bermuda.