Reviewing Runway Growth Finance (NASDAQ:RWAY) and Sezzle (OTC:SEZNL)

Runway Growth Finance (NASDAQ:RWAY) and Sezzle (OTC:SEZNL) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Runway Growth Finance and Sezzle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Runway Growth Finance	27.00%	13.85%	7.07%
Sezzle	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Runway Growth Finance and Sezzle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Runway Growth Finance	0	6	1	0	2.14
Sezzle	0	0	0	0	N/A

Runway Growth Finance currently has a consensus price target of $13.04, suggesting a potential upside of 3.92%. Given Runway Growth Finance’s higher probable upside, analysts plainly believe Runway Growth Finance is more favorable than Sezzle.

Institutional & Insider Ownership

64.6% of Runway Growth Finance shares are owned by institutional investors. 1.0% of Runway Growth Finance shares are owned by 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.

Earnings and Valuation

This table compares Runway Growth Finance and Sezzle’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Runway Growth Finance	$55.88 million	9.10	$44.34 million	$1.10	11.41
Sezzle	N/A	N/A	N/A	N/A	N/A

Runway Growth Finance has higher revenue and earnings than Sezzle.

Summary

Runway Growth Finance beats Sezzle on 8 of the 8 factors compared between the two stocks.

About Runway Growth Finance

Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors. It prefers to investments in companies engaged in electronic equipment and instruments, systems software, hardware, storage and peripherals and specialized consumer services, application software, healthcare technology, internet software and services, data processing and outsourced services, internet retail, human resources and employment services, biotechnology, healthcare equipment and education services. It invests in senior secured loans between $10 million and $75 million.

About Sezzle

Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada. The company provides payment solution at online stores and various brick-and-mortar retail locations that connects consumers with merchants. Its platform enables customers to make online purchases and split the payment for the purchase in four equal interest free payments over six weeks. Sezzle Inc. was incorporated in 2016 and is headquartered in Minneapolis, Minnesota.