Sezzle vs Affirm Which Performs Better?

Sezzle and Affirm are both emerging players in the buy now, pay later space, offering consumers the ability to make purchases online and pay for them in installments. Sezzle focuses on smaller purchases and targets a younger demographic, while Affirm caters to larger purchases for a broad range of consumers. Both companies have seen significant growth in recent years as the buy now, pay later trend continues to gain popularity. Investors are keeping a close eye on the performance of these stocks as they compete for market share in this rapidly growing industry.

Sezzle or Affirm?

When comparing Sezzle and Affirm, 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 Sezzle and Affirm.

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. Sezzle has a dividend yield of -%, while Affirm has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sezzle reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Affirm 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 Sezzle P/E ratio at 30.55 and Affirm's P/E ratio at -50.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sezzle P/B ratio is 28.03 while Affirm's P/B ratio is 7.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sezzle has seen a 5-year revenue growth of 3096.77%, while Affirm's is 4.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sezzle's ROE at 137.51% and Affirm's ROE at -16.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $308.02 for Sezzle and $67.78 for Affirm. Over the past year, Sezzle's prices ranged from $13.30 to $477.52, with a yearly change of 3490.41%. Affirm's prices fluctuated between $22.25 and $72.82, with a yearly change of 227.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.