Comparing Sezzle (NASDAQ:SEZL) & Fidelity National Information Services (NYSE:FIS)

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

Institutional & Insider Ownership

2.0% of Sezzle shares are held by institutional investors. Comparatively, 96.2% of Fidelity National Information Services shares are held by institutional investors. 49.5% of Sezzle shares are held by company insiders. Comparatively, 0.2% of Fidelity National Information Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Sezzle and Fidelity National Information Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sezzle	$271.13 million	6.57	$78.52 million	$3.23	16.14
Fidelity National Information Services	$10.46 billion	3.18	$1.45 billion	$0.27	237.62

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

Profitability

This table compares Sezzle and Fidelity National Information Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sezzle	27.66%	90.06%	34.22%
Fidelity National Information Services	1.09%	18.73%	8.58%

Analyst Recommendations

This is a breakdown of current ratings for Sezzle and Fidelity National Information Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sezzle	0	3	3	0	2.50
Fidelity National Information Services	2	7	12	0	2.48

Sezzle currently has a consensus target price of $113.00, indicating a potential upside of 116.72%. Fidelity National Information Services has a consensus target price of $85.53, indicating a potential upside of 33.31%. Given Sezzle’s stronger consensus rating and higher possible upside, equities analysts clearly believe Sezzle is more favorable than Fidelity National Information Services.

Volatility and Risk

Sezzle has a beta of 8.63, meaning that its share price is 763% more volatile than the S&P 500. Comparatively, Fidelity National Information Services has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Summary

Sezzle beats Fidelity National Information Services on 9 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 Fidelity National Information Services

Fidelity National Information Services, Inc. engages in the provision of financial services technology solutions for financial institutions, businesses, and developers worldwide. It operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments. The company provides core processing and ancillary applications; mobile and online banking; fraud, risk management, and compliance; card and retail payment; electronic funds transfer and network; wealth and retirement; and item processing and output solutions. It also offers trading and asset, lending, leveraged and syndicated loan markets, and treasury and risk solutions. The company was founded in 1968 and is headquartered in Jacksonville, Florida.