Reviewing Sezzle (NASDAQ:SEZL) & Abacus Global Management (NYSE:ABX)

Sezzle (NASDAQ:SEZL) and Abacus Global Management (NYSE:ABX) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of current ratings and target prices for Sezzle and Abacus Global Management, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sezzle	0	4	4	1	2.67
Abacus Global Management	0	3	1	1	2.60

Sezzle presently has a consensus price target of $145.67, suggesting a potential upside of 10.25%. Abacus Global Management has a consensus price target of $10.00, suggesting a potential upside of 20.26%. Given Abacus Global Management’s higher possible upside, analysts clearly believe Abacus Global Management is more favorable than Sezzle.

Institutional and Insider Ownership

2.0% of Sezzle shares are owned by institutional investors. 43.9% of Sezzle shares are owned by company insiders. Comparatively, 46.4% of Abacus Global Management shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sezzle	30.35%	83.48%	37.55%
Abacus Global Management	10.55%	21.03%	10.19%

Risk & Volatility

Sezzle has a beta of 6.71, indicating that its stock price is 571% more volatile than the S&P 500. Comparatively, Abacus Global Management has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sezzle and Abacus Global Management”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sezzle	$450.28 million	9.91	$133.13 million	$4.60	28.72
Abacus Global Management	$235.24 million	3.46	$36.53 million	$0.28	29.70

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

Summary

Sezzle beats Abacus Global Management 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 Abacus Global Management

Abacus Life, Inc. operates as an alternative asset manager specializing in life insurance products. It purchases life insurance policies from consumers seeking liquidity and manages policies over time via trading, holding, and/or servicing. The company was founded in 2004 and is based in Orlando, Florida.