Sezzle (NASDAQ:SEZL) versus PAR Technology (NYSE:PAR) Critical Analysis

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

Insider & Institutional Ownership

2.0% of Sezzle shares are held by institutional investors. 49.5% of Sezzle shares are held by insiders. Comparatively, 3.7% of PAR Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Sezzle and PAR Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sezzle	$271.13 million	8.21	$78.52 million	$3.23	20.17
PAR Technology	$349.98 million	4.14	-$4.99 million	($2.14)	-16.69

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

Volatility and Risk

Sezzle has a beta of 8.69, suggesting that its stock price is 769% more volatile than the S&P 500. Comparatively, PAR Technology has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sezzle	27.66%	90.06%	34.22%
PAR Technology	-19.21%	-2.56%	-1.58%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sezzle and PAR Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sezzle	0	3	2	0	2.40
PAR Technology	1	2	6	0	2.56

Sezzle currently has a consensus target price of $126.25, indicating a potential upside of 93.78%. PAR Technology has a consensus target price of $64.00, indicating a potential upside of 79.14%. Given Sezzle’s higher possible upside, equities analysts clearly believe Sezzle is more favorable than PAR Technology.

Summary

Sezzle beats PAR Technology on 11 of the 14 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 PAR Technology

PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and kitchen display systems, payment devices, cash drawers, printers, and other peripherals. In addition, this segment provides services, such as hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services comprising inside and outside plant services, and maintenance of infrastructure and information systems; satellite ground system support comprising operations and maintenance, sustainment, upgrades, communications security management, anomaly response/resolution, process improvement, emergency response, and disaster recovery services; and information technology infrastructure library services to the United States Department of Defense, intelligence community (IC), and other federal agencies. This segment also offers various IC support services, systems integration, situational awareness solutions, and mission readiness support services. The company was founded in 1968 and is based in New Hartford, New York.