PayPal vs Sezzle Which Performs Better?

PayPal and Sezzle are two popular fintech companies that offer payment solutions for online businesses. While PayPal is a well-established global leader in online payments, Sezzle is a rapidly growing financial technology company that specializes in buy now, pay later services. Investors looking to diversify their portfolio may consider comparing the stock performance of PayPal and Sezzle to determine which investment option better suits their financial goals and risk tolerance.

PayPal or Sezzle?

When comparing PayPal 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 PayPal 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. PayPal has a dividend yield of -%, while Sezzle has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PayPal reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 PayPal P/E ratio at 19.93 and Sezzle's P/E ratio at 0.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PayPal P/B ratio is 4.37 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, PayPal has seen a 5-year revenue growth of 1.07%, while Sezzle's is 3096.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PayPal's ROE at 21.46% and Sezzle's ROE at 101.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $83.38 for PayPal and $392.76 for Sezzle. Over the past year, PayPal's prices ranged from $53.98 to $87.47, with a yearly change of 62.04%. 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.