TOST vs. SHOP
TOST (Toast, Inc.) and SHOP (Shopify Inc.) are both stocks. Both are in the Technology sector — TOST in Software - Infrastructure, SHOP in Software - Application. Over the past 3 years, TOST returned 3.31%/yr vs 21.77%/yr for SHOP. A 0.55 correlation means they provide meaningful diversification when combined.
Performance
TOST vs. SHOP - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with TOST having a -32.13% return and SHOP slightly higher at -31.18%.
TOST
- 1D
- -2.19%
- 1M
- -3.79%
- YTD
- -32.13%
- 6M
- -30.27%
- 1Y
- -45.24%
- 3Y*
- 3.31%
- 5Y*
- —
- 10Y*
- —
SHOP
- 1D
- 1.13%
- 1M
- 0.34%
- YTD
- -31.18%
- 6M
- -30.07%
- 1Y
- -0.57%
- 3Y*
- 21.77%
- 5Y*
- -1.84%
- 10Y*
- 44.31%
TOST vs. SHOP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
TOST Toast, Inc. | -32.13% | -2.58% | 99.62% | 1.28% | -48.06% | -44.47% |
SHOP Shopify Inc. | -31.18% | 51.39% | 36.50% | 124.43% | -74.80% | -6.04% |
Correlation
The correlation between TOST and SHOP is 0.50, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Sep 23, 2021 | 0.55 |
The correlation between TOST and SHOP has been stable across timeframes, ranging from 0.47 to 0.55 - a consistent structural relationship.
Fundamentals
TOST:
$14.51B
SHOP:
$144.39B
TOST:
$0.68
SHOP:
$1.02
TOST:
35.43
SHOP:
108.75
TOST:
0.02
SHOP:
0.21
TOST:
2.26
SHOP:
15.75
TOST:
7.29
SHOP:
11.55
TOST:
$6.45B
SHOP:
$9.20B
TOST:
$1.69B
SHOP:
$5.93B
TOST:
$430.00M
SHOP:
$1.60B
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Return for Risk
TOST vs. SHOP — Risk / Return Rank
TOST
SHOP
TOST vs. SHOP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Toast, Inc. (TOST) and Shopify Inc. (SHOP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| TOST | SHOP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.98 | ||
| Sortino ratioReturn per unit of downside risk | -1.79 | ||
| Omega ratioGain probability vs. loss probability | 0.83 | 1.05 | -0.21 |
| Calmar ratioReturn relative to maximum drawdown | -0.83 | -0.01 | -0.82 |
| Martin ratioReturn relative to average drawdown | -1.41 | -0.03 | -1.39 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TOST | SHOP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.99 | -0.01 | -0.98 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | -0.03 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.75 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.30 | 0.69 | -0.99 |
Drawdowns
TOST vs. SHOP - Drawdown Comparison
The maximum TOST drawdown since its inception was -80.56%, smaller than the maximum SHOP drawdown of -84.82%. Use the drawdown chart below to compare losses from any high point for TOST and SHOP.
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Drawdown Indicators
| TOST | SHOP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -80.56% | -84.82% | +4.26% |
Max Drawdown (1Y)Largest decline over 1 year | -54.71% | -46.71% | -8.00% |
Max Drawdown (3Y)Largest decline over 3 years | -54.71% | -46.71% | -8.00% |
Max Drawdown (5Y)Largest decline over 5 years | — | -84.82% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -84.82% | — |
Current DrawdownCurrent decline from peak | -63.05% | -38.12% | -24.93% |
Average DrawdownAverage peak-to-trough decline | -57.92% | -28.22% | -29.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 32.05% | 21.74% | +10.31% |
Volatility
TOST vs. SHOP - Volatility Comparison
Toast, Inc. (TOST) has a higher volatility of 21.74% compared to Shopify Inc. (SHOP) at 17.86%. This indicates that TOST's price experiences larger fluctuations and is considered to be riskier than SHOP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TOST | SHOP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 21.74% | 17.86% | +3.88% |
Volatility (6M)Calculated over the trailing 6-month period | 36.52% | 43.67% | -7.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 45.95% | 57.27% | -11.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 61.31% | 65.57% | -4.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.31% | 59.09% | +2.22% |
Dividends
TOST vs. SHOP - Dividend Comparison
Neither TOST nor SHOP has paid dividends to shareholders.
Financials
TOST vs. SHOP - Financials Comparison
This section allows you to compare key financial metrics between Toast, Inc. and Shopify Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
Frequently Asked Questions
TOST and SHOP have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TOST has higher volatility (21.74%) compared to SHOP (17.86%). In terms of maximum drawdown, TOST dropped -80.56% vs SHOP's -84.82%.
SHOP currently has the higher Sharpe Ratio (-0.01 vs -0.99), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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