Bread Financial vs Sezzle Which Is More Favorable?

Bread Financial and Sezzle are both financial technology companies that offer buy now, pay later services to consumers. Bread Financial, founded in 2014, provides financing options for online purchases through its merchant partners. On the other hand, Sezzle, founded in 2016, allows consumers to split their purchases into interest-free installments. Both companies have seen significant growth in recent years, but their stocks have performed differently. While Bread Financial's stock has remained relatively stable, Sezzle's stock has experienced more volatility.

Bread Financial or Sezzle?

When comparing Bread Financial and Sezzle, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Bread Financial and Sezzle.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Bread Financial has a dividend yield of 1.87%, while Sezzle has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bread Financial reports a 5-year dividend growth of -18.10% year and a payout ratio of 13.46%. On the other hand, Sezzle reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Bread Financial P/E ratio at 8.97 and Sezzle's P/E ratio at 0.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bread Financial P/B ratio is 0.90 while Sezzle's P/B ratio is 0.04.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bread Financial has seen a 5-year revenue growth of -0.16%, while Sezzle's is 3096.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bread Financial's ROE at 10.20% and Sezzle's ROE at 101.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $56.28 for Bread Financial and $364.27 for Sezzle. Over the past year, Bread Financial's prices ranged from $26.27 to $63.01, with a yearly change of 139.86%. Sezzle's prices fluctuated between $9.75 and $454.16, with a yearly change of 4558.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.