Critical Survey: Sezzle (NASDAQ:SEZL) & Swvl (NASDAQ:SWVL)

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

Institutional & Insider Ownership

2.0% of Sezzle shares are held by institutional investors. Comparatively, 34.0% of Swvl shares are held by institutional investors. 57.7% of Sezzle shares are held by company insiders. Comparatively, 29.9% of Swvl shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sezzle	25.29%	101.18%	18.90%
Swvl	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sezzle	$159.36 million	11.12	$7.10 million	$9.40	33.60
Swvl	$22.85 million	1.88	$3.06 million	N/A	N/A

Sezzle has higher revenue and earnings than Swvl.

Volatility and Risk

Sezzle has a beta of 9.23, meaning that its share price is 823% more volatile than the S&P 500. Comparatively, Swvl has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Sezzle and Swvl, as provided by MarketBeat.

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

Sezzle currently has a consensus price target of $231.50, suggesting a potential downside of 26.71%. Given Sezzle’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sezzle is more favorable than Swvl.

Summary

Sezzle beats Swvl 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 Swvl

Swvl Holdings Corp. provides mass transit ridesharing services. It offers B2C Swvl Retail, which provides riders with a network of minibuses and other vehicles running on fixed or semi-fixed routes within cities; Swvl Travel that allows riders to book rides on long-distance intercity routes on vehicle available through the Swvl platform or through third-party services; and Swvl Business, a transport as a service enterprise product for businesses, schools, municipal transit agencies, and other customers. Swvl Holdings Corp. was founded in 2017 and is headquartered in Dubai, the United Arab Emirates.