Analyzing Expensify (NASDAQ:EXFY) & Sezzle (NASDAQ:SEZL)

Sezzle (NASDAQ:SEZL) and Expensify (NASDAQ:EXFY) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Risk & Volatility

Sezzle has a beta of 6.7, suggesting that its stock price is 570% more volatile than the S&P 500. Comparatively, Expensify has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Institutional and Insider Ownership

2.0% of Sezzle shares are held by institutional investors. Comparatively, 68.4% of Expensify shares are held by institutional investors. 49.5% of Sezzle shares are held by company insiders. Comparatively, 11.7% of Expensify shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sezzle	30.83%	87.46%	36.29%
Expensify	-14.68%	-15.26%	-10.96%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sezzle and Expensify, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sezzle	0	5	3	1	2.56
Expensify	1	1	0	0	1.50

Sezzle currently has a consensus price target of $151.33, indicating a potential downside of 5.56%. Expensify has a consensus price target of $2.50, indicating a potential upside of 39.66%. Given Expensify’s higher probable upside, analysts clearly believe Expensify is more favorable than Sezzle.

Valuation and Earnings

This table compares Sezzle and Expensify”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sezzle	$450.28 million	11.97	$133.13 million	$4.21	38.06
Expensify	$142.10 million	1.06	-$21.39 million	($0.23)	-7.78

Sezzle has higher revenue and earnings than Expensify. Expensify is trading at a lower price-to-earnings ratio than Sezzle, indicating that it is currently the more affordable of the two stocks.

Summary

Sezzle beats Expensify on 13 of the 15 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 Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.