Comparing Sezzle (NASDAQ:SEZL) & Capita (OTCMKTS:CTAGY)

Sezzle (NASDAQ:SEZL) and Capita (OTCMKTS:CTAGY) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Risk & Volatility

Sezzle has a beta of 8.49, suggesting that its stock price is 749% more volatile than the S&P 500. Comparatively, Capita has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Institutional & Insider Ownership

2.0% of Sezzle shares are owned by institutional investors. 57.7% of Sezzle shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Sezzle and Capita, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sezzle	0	0	2	1	3.33
Capita	0	0	0	0	0.00

Sezzle currently has a consensus price target of $174.00, indicating a potential downside of 28.11%. Given Sezzle’s stronger consensus rating and higher probable upside, research analysts plainly believe Sezzle is more favorable than Capita.

Earnings and Valuation

This table compares Sezzle and Capita”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sezzle	$159.36 million	8.47	$7.10 million	$7.01	34.53
Capita	$3.50 billion	0.10	-$221.54 million	N/A	N/A

Sezzle has higher earnings, but lower revenue than Capita.

Profitability

This table compares Sezzle and Capita’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sezzle	21.77%	84.38%	12.65%
Capita	N/A	N/A	N/A

Summary

Sezzle beats Capita on 12 of the 13 factors compared between the two stocks.

About Sezzle

Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada. The company provides payment solution in-store and at online retail stores; and through proprietary payments solution that connects consumers with merchants. It also offers Sezzle Platform that provides a payments solution for consumers that extends credit at the point-of-sale allowing consumers to purchase and receive the ordered merchandise at the time of sale while paying in installments over time; Pay-in-Four, which allows consumers to pay a fourth of the purchase price up front and then another fourth of the purchase price every two weeks thereafter over a total of six weeks; Pay-in-Full that allows consumers to pay for the full value of their order up-front through the Sezzle Platform without the extension of credit; and Pay-in-Two and other alternative installment options, which allow consumer to pay half of the value of their order up-front and the second half in two weeks. In addition, the company provides Sezzle Virtual Card that allows consumers to access the Sezzle Platform in the form of close-end installment loans and shop with merchants that are not integrated with Sezzle; Sezzle Anywhere, a paid subscription service that allows consumers to use their Sezzle Virtual Card at any merchant online or in-store; Sezzle Premium, a paid subscription service that allows its consumers to access large, non-integrated premium merchants; and Sezzle Up, an opt-in feature of the Sezzle Platform. Further, it offers Long-Term Lending through collaboration with third-party lenders and Product Innovation. Sezzle Inc. was incorporated in 2016 and is headquartered in Minneapolis, Minnesota.

About Capita

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates in two divisions: Public Service and Capita Experience divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection and debt management, complaint handling, customer experience system and software, acquisition and retention, and data and analytics. In addition, the company offers licensing and support, support, digital policing, and engineering practice; learning and development services; education service and local education authority software; solutions for central and local government services; and business process services. Further, it provides pension administration and software, pensions consulting, and data solutions; finance software, automation, and management information systems solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT solutions; and actuarial, defence, financial, healthcare, housing, legal, public safety, retail, retail banking, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.