Comparing Sezzle (NASDAQ:SEZL) & Society Pass (NASDAQ:SOPA)

Sezzle (NASDAQ:SEZL) and Society Pass (NASDAQ:SOPA) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Valuation & Earnings

This table compares Sezzle and Society Pass”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sezzle	$271.13 million	4.59	$7.10 million	$13.10	16.83
Society Pass	$6.91 million	0.65	-$18.13 million	($5.12)	-0.24

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

Insider & Institutional Ownership

2.0% of Sezzle shares are held by institutional investors. Comparatively, 3.1% of Society Pass shares are held by institutional investors. 57.7% of Sezzle shares are held by insiders. Comparatively, 5.6% of Society Pass shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Sezzle and Society Pass’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sezzle	25.29%	101.18%	18.90%
Society Pass	-171.10%	-431.98%	-79.26%

Analyst Ratings

This is a breakdown of recent recommendations for Sezzle and Society Pass, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sezzle	0	0	2	1	3.33
Society Pass	0	1	1	0	2.50

Sezzle presently has a consensus price target of $368.50, suggesting a potential upside of 67.12%. Society Pass has a consensus price target of $16.00, suggesting a potential upside of 1,200.81%. Given Society Pass’ higher possible upside, analysts plainly believe Society Pass is more favorable than Sezzle.

Risk and Volatility

Sezzle has a beta of 9.09, indicating that its stock price is 809% more volatile than the S&P 500. Comparatively, Society Pass has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Summary

Sezzle beats Society Pass on 13 of the 15 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 Society Pass

Society Pass Incorporated acquires and operates fintech and e-commerce platforms and mobile applications for consumers and merchants in Singapore, Vietnam, Indonesia, Philippines, the United States, Malaysia, Hong Kong, and Thailand. It operates through Online Grocery and Food and Groceries Deliveries, Digital marketing, Online ticketing and reservation, Telecommunications Reseller, e-Commerce, and Merchant Point of Sale segments. The company operates Leflair, an online lifestyle platform that offers services and products, such as fashion and accessories, beauty and personal care, and home and lifestyle; an online food delivery service under the Handycart brand name; and an online grocery delivery service under the Pushkart brand name. It also sells hardware and software to merchant; local mobile phone and global internet data plans; and domestic and overseas air ticket, and global hotel reservations, as well as offers digital marketing services. The company was formerly known as Food Society, Inc. and changed its name to Society Pass Incorporated in October 2018. Society Pass Incorporated was incorporated in 2018 and is headquartered in Singapore.