Head to Head Contrast: Global Payments (NYSE:GPN) and Sezzle (NASDAQ:SEZL)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Payments	16.92%	12.72%	5.99%
Sezzle	29.57%	88.61%	36.38%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Payments	$7.71 billion	2.34	$1.40 billion	$5.79	11.30
Sezzle	$450.28 million	4.48	$133.13 million	$3.74	15.97

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

Volatility & Risk

Global Payments has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Sezzle has a beta of 8.14, indicating that its share price is 714% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Payments	2	16	6	1	2.24
Sezzle	0	2	4	1	2.86

Global Payments currently has a consensus price target of $88.05, suggesting a potential upside of 34.62%. Sezzle has a consensus price target of $108.33, suggesting a potential upside of 81.43%. Given Sezzle’s stronger consensus rating and higher probable upside, analysts plainly believe Sezzle is more favorable than Global Payments.

Insider & Institutional Ownership

89.8% of Global Payments shares are held by institutional investors. Comparatively, 2.0% of Sezzle shares are held by institutional investors. 0.6% of Global Payments shares are held by company insiders. Comparatively, 49.5% of Sezzle shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Sezzle beats Global Payments on 9 of the 14 factors compared between the two stocks.

About Global Payments

Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, account payables, and electronic payment alternatives solutions for businesses and governments. It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations. The company was founded in 1967 and is headquartered in Atlanta, Georgia.

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.