Head to Head Comparison: Sezzle (NASDAQ:SEZL) & Capita (OTCMKTS:CTAGY)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Capita and Sezzle, as reported by MarketBeat.com.

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

Sezzle 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, analysts plainly believe Sezzle is more favorable than Capita.

Insider and Institutional 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Capita and Sezzle”s gross revenue, earnings per share (EPS) and valuation.

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

Sezzle has lower revenue, but higher earnings than Capita.

Volatility & Risk

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

Profitability

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

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

Summary

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

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.

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.