Bread Financial Holdings, Inc. (BFH) vs Sezzle Inc. (SEZL)

Bread Financial Holdings, Inc. and Sezzle Inc. are both Credit Services companies. Bread Financial Holdings, Inc. and Sezzle Inc. are of similar size ($3.9B and $3.8B). Bread Financial Holdings, Inc. trades at the lower P/E: 8.0× against 23.6×. Sezzle Inc. grew revenue faster over the last twelve months: 43.1% against 0.72%. Sezzle Inc. has the higher net margin (30.4% vs 11.9%) and the higher return on invested capital (49.7% vs 0.00%). Across the 21 metrics below, Bread Financial Holdings, Inc. leads on 12 and Sezzle Inc. on 9.

Valuation

Metric BFH SEZL Credit Services median
P/E 7.97 23.60 9.64
P/S 0.87 7.04 0.87
P/B 1.22 16.08 1.16
Price to free cash flow 1.90 13.78 2.99
EV/EBITDA n/m 17.87 9.58
EV/Sales (2.67) 7.29 2.32
Earnings yield 12.55% 4.24% 6.72%
Free cash flow yield 52.66% 7.26% 12.33%

Profitability

Metric BFH SEZL Credit Services median
Gross margin 100.00% 82.59% 77.13%
Operating margin 76.34% 40.39% 0.34%
Net margin 11.87% 30.35% 9.25%
Free cash flow margin 45.67% 51.12% 13.03%
Return on equity 17.27% 88.85% 8.49%
Return on assets 2.55% 40.01% 2.29%
Return on invested capital 0.00% 49.69% 4.09%

Growth

Metric BFH SEZL Credit Services median
Revenue growth (TTM) 0.72% 43.06% 4.62%
EPS growth (last fiscal year) 98.36% 69.99% —
Revenue growth, 5-year CAGR 4.34% 50.26% 9.13%
Net income growth, 5-year CAGR 19.34% 0.00% 0.00%

Health

Metric BFH SEZL Credit Services median
Debt to equity 0.98 0.52 0.68
Current ratio 1.17 4.02 1.55
Net debt to EBITDA (4.25) 0.38 0.13

Dividend

Metric BFH SEZL Credit Services median
Dividend yield 2.42% — 3.34%
Payout ratio 0.08 — 0.00

Size

Metric BFH SEZL Credit Services median
Market cap 3.90b 3.75b 872.19m

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