Contrasting Corpay (NYSE:CPAY) & Sezzle (NASDAQ:SEZL)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sezzle	0	2	4	1	2.86
Corpay	0	5	10	0	2.67

Sezzle currently has a consensus target price of $108.33, indicating a potential upside of 25.28%. Corpay has a consensus target price of $371.23, indicating a potential upside of 9.36%. Given Sezzle’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Sezzle is more favorable than Corpay.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sezzle	$450.28 million	6.49	$133.13 million	$3.74	23.12
Corpay	$4.53 billion	5.10	$1.07 billion	$15.04	22.57

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sezzle	29.57%	88.61%	36.38%
Corpay	23.62%	37.13%	6.76%

Insider and Institutional Ownership

2.0% of Sezzle shares are held by institutional investors. Comparatively, 98.8% of Corpay shares are held by institutional investors. 49.5% of Sezzle shares are held by insiders. Comparatively, 5.2% of Corpay shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Sezzle has a beta of 8.14, meaning that its share price is 714% more volatile than the S&P 500. Comparatively, Corpay has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Summary

Sezzle beats Corpay on 10 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 Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.