How do Toast and Block differ in business model?

Toast provides an integrated point-of-sale and payments platform built specifically for restaurants, while Block operates a broader ecosystem spanning the Square merchant platform across many industries and the Cash App consumer financial services business.

Which company has more diversified exposure to payments and fintech?

Block is more diversified, serving merchants across many industries alongside its large Cash App consumer platform, while Toast is concentrated specifically on the restaurant and food service vertical.

Which stock carries more risk, TOST or SQ?

Toast carries concentration risk tied to the restaurant industry, while Block faces risks tied to Cash App growth volatility and regulatory scrutiny of consumer fintech products.

How is the AI score calculated?

The AI score is a composite signal incorporating fundamental quality, valuation, momentum, analyst sentiment, and risk factors. A higher score indicates a more favorable overall setup relative to the market at the time of the latest update.

Last updated: August 23, 2026

brimindinvest.com / compare / tost-vs-sqLIVE

TOST

Toast, Inc. · Payments and Restaurant Software

$36.64

+25.44% this month

VERSUS

COMPARE

SQ

Block, Inc. · Payments and Financial Technology

N/A

N/A this month

Scoreboard verdict

Across AI score, momentum, valuation, upside, operating margin

TOST

0

SQ

0

MIXED SETUP

Comparison scoreboard

MIXED SETUP

AI Score

TOST 24.0

SQ N/A

1Y Return

TOST -13.99%

SQ N/A

Fwd P/E

TOST 21.17

SQ N/A

Target Up.

TOST +5.71%

SQ N/A

Op. Margin

TOST 7.97%

SQ N/A

Metrics last refreshed: 8/23/2026

Quick take

TOST vs SQ Stock Comparison: AI Score, Valuation, Performance and Upside

Toast offers focused exposure to restaurant-specific point-of-sale and payments software, while Block provides a more diversified fintech platform spanning merchant payments and consumer financial services through Cash App.

Investors weighing Toast against Block are choosing between a vertical-specific restaurant technology platform and a broader, more diversified consumer and merchant fintech company.

Live analysis · updated 8/23/2026

TOST and SQ are closely matched — they split the tracked metrics evenly.

Want a full valuation workup? 16-section report — AI Score, Monte Carlo forecast, bull/bear case, DCF, and more.

TOST Report

Normalized 1Y performance

TOST

SQ

Not enough data to chart yet.

Recent returns

TOST

SQ

Analyst price targets & sentiment

TOST · 26 analysts

STRONG BUYHOLDSTRONG SELL

Buy (1.8/5.0)

Price target range

analyst low$25.00
analyst high$45.00
analyst mean$38.73
current price$36.64

+5.7% upside to analyst mean

SQ

Price target data unavailable

N/A

Who should consider this stock?

TOST may suit investors who:

Want focused exposure to restaurant industry technology adoption
Believe in continued growth of Toast's location count and software attach rates
Are comfortable with a single-vertical business model
Value a bundled hardware, software, and payments approach

SQ may suit investors who:

Prefer diversified exposure across merchant payments and consumer fintech
Believe in continued growth and monetization of the Cash App ecosystem
Want exposure to a broader range of business types beyond restaurants
Are comfortable with regulatory and competitive risks in consumer fintech

Performance & AI score

Performance & AI score
Metric	TOST	SQ
AI score	24.0	N/A
AI rank	#3326	N/A
Latest close	$36.64	N/A
1M return	+25.44%	N/A
6M return	+32.56%	N/A
1Y return	-13.99%	N/A

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

$10,000 invested — hypothetical growth (dividends reinvested)
Period	TOST	SQ
1Y ago	$8.6K (-14.0%) started 2025-08-21	N/A
5Y ago	$5.86K (-41.4%) started 2021-09-22	N/A
10Y ago	$5.86K (-41.4%) started 2021-09-22	N/A

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Valuation & upside potential
Metric	TOST	SQ
Market cap	$21.18B	N/A
Trailing P/E	46.38	N/A
Forward P/E	21.17	N/A
Price/Sales	3.11	2.46
EV/Revenue	2.86	N/A
Analyst target	$38.73	N/A
Target upside	+5.71%	N/A

Full DCF model for TOST

Growth, profitability & risk

Growth, profitability & risk
Metric	TOST	SQ
Revenue growth	23.10%	N/A
Earnings growth	100.00%	N/A
EPS growth	+100.00%	N/A
FCF margin	+7.06%	N/A
Operating margin	7.97%	N/A
Profit margin	7.14%	N/A
ROIC proxy	25.16%	N/A
Return on equity	25.16%	N/A
Dividend yield	0.00%	N/A
Beta	1.73	1.54
Debt/equity	N/A	N/A
Current ratio	2.40	N/A
Quick ratio	1.68	N/A

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

TOST max drawdown50.49%

SQ max drawdownN/A

TOST max wkly drop21.48%

SQ max wkly dropN/A

5Y risk snapshot

TOST max drawdown80.56%

SQ max drawdownN/A

TOST max wkly drop36.74%

SQ max wkly dropN/A

10Y risk snapshot

TOST max drawdown80.56%

SQ max drawdownN/A

TOST max wkly drop36.74%

SQ max wkly dropN/A

Performance metrics by period

Performance metrics by period
Period	Metric	TOST	SQ
1Y	Growth	-13.99%	N/A
	CAGR	-14.00%	N/A
	Sharpe ratio	-0.19	N/A
	Max drawdown	50.49%	N/A
	Max daily drop	14.74%	N/A
	Max wkly drop	21.48%	N/A
5Y	Growth	-41.39%	N/A
	CAGR	-10.31%	N/A
	Sharpe ratio	0.05	N/A
	Max drawdown	80.56%	N/A
	Max daily drop	22.84%	N/A
	Max wkly drop	36.74%	N/A
10Y	Growth	-41.39%	N/A
	CAGR	-10.31%	N/A
	Sharpe ratio	0.05	N/A
	Max drawdown	80.56%	N/A
	Max daily drop	22.84%	N/A
	Max wkly drop	36.74%	N/A

Business comparison

Business comparison
Category	TOST	SQ
Company	Toast, Inc.	Block, Inc.
Sector	Payments and Restaurant Software	Payments and Financial Technology
Industry	N/A	N/A
Core business	Toast provides an integrated point-of-sale, payments, and restaurant management software platform designed specifically for restaurants and food service businesses.	Block operates a diversified payments and fintech business, including the Square seller ecosystem for merchants and the Cash App consumer financial services platform.
Investor focus	Watch location and customer growth, average revenue per location, and progress toward sustained profitability.	Watch gross profit growth across Square and Cash App, Cash App monetization trends, and overall profitability progress.

TOST strengths

Purpose-built platform tailored specifically to restaurant industry workflows
Growing base of locations driving recurring software and payments revenue
Bundled hardware, software, and payments model that increases customer stickiness

SQ strengths

Diversified business spanning merchant payments and consumer financial services
Large, engaged Cash App user base with multiple monetization avenues
Broad merchant ecosystem serving businesses across many industries, not just restaurants

Risks to watch — TOST

Profitability has historically been thinner than more diversified payments peers
Restaurant industry exposure ties results to a single, competitive vertical
Competitive pressure from other point-of-sale and restaurant technology providers

Risks to watch — SQ

Cash App growth and monetization trends can be volatile and harder to predict
Regulatory scrutiny around consumer fintech and payments products
Competitive pressure from banks, fintechs, and other payment platforms

Frequently asked questions

Block offers broader diversification across merchant payments and consumer fintech through Cash App, while Toast offers more focused, vertical-specific exposure to restaurant technology adoption.

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