Critical Survey: Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY) & Sezzle (NASDAQ:SEZL)

Sezzle (NASDAQ:SEZL) and Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

2.0% of Sezzle shares are held by institutional investors. Comparatively, 0.0% of Grupo Financiero Banorte SAB de CV shares are held by institutional investors. 43.9% of Sezzle shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Sezzle and Grupo Financiero Banorte SAB de CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sezzle	31.39%	81.99%	40.12%
Grupo Financiero Banorte SAB de CV	15.88%	23.48%	2.28%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sezzle and Grupo Financiero Banorte SAB de CV, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sezzle	0	4	4	1	2.67
Grupo Financiero Banorte SAB de CV	1	0	0	0	1.00

Sezzle currently has a consensus target price of $160.33, indicating a potential upside of 7.40%. Given Sezzle’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Sezzle is more favorable than Grupo Financiero Banorte SAB de CV.

Risk & Volatility

Sezzle has a beta of 6.58, indicating that its share price is 558% more volatile than the S&P 500. Comparatively, Grupo Financiero Banorte SAB de CV has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sezzle and Grupo Financiero Banorte SAB de CV”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sezzle	$581.59 million	8.67	$133.13 million	$5.23	28.54
Grupo Financiero Banorte SAB de CV	$21.89 billion	1.45	$3.38 billion	$6.30	8.94

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

Summary

Sezzle beats Grupo Financiero Banorte SAB de CV on 12 of the 15 factors compared between the two stocks.

About Sezzle

Sezzle Inc. is a financial technology company that operates a buy now, pay later platform. Its services let shoppers split eligible purchases into installments at checkout, while giving merchants another payment option to offer customers. The company also provides shopping and payment tools through its app, including a virtual card and services designed to help users manage purchases and build credit. Sezzle’s platform primarily serves consumers and merchants in the United States and Canada. Founded in 2016, Sezzle is headquartered in Minneapolis, Minnesota.

About Grupo Financiero Banorte SAB de CV

Grupo Financiero Banorte is a Mexico-based financial services group whose principal banking subsidiary is Banco Mercantil del Norte, commonly known as Banorte. Its roots trace to Banco Mercantil de Monterrey, founded in 1899, and the group has grown through acquisitions and expansion in Mexico. Banorte offers personal and commercial banking services, including deposit accounts, loans, credit cards, payments and digital banking. Its other businesses provide services such as retirement savings and pension management, insurance, brokerage, investment and asset management, and leasing and factoring.