Nelnet, Inc. (NNI) vs Sezzle Inc. (SEZL)

Nelnet, Inc. and Sezzle Inc. are both Credit Services companies. Nelnet, Inc. is the larger, with a market value of $4.5B against $3.8B — 1.2× the size. Nelnet, Inc. trades at the lower P/E: 14.9× against 23.6×. Sezzle Inc. grew revenue faster over the last twelve months: 43.1% against −6.25%. Sezzle Inc. has the higher net margin (30.4% vs 14.4%) and the higher return on invested capital (49.7% vs 3.14%). Across the 21 metrics below, Sezzle Inc. leads on 12 and Nelnet, Inc. on 9.

Valuation

Metric NNI SEZL Credit Services median
P/E 14.87 23.60 9.64
P/S 2.13 7.04 0.87
P/B 1.23 16.08 1.16
Price to free cash flow 15.36 13.78 2.99
EV/EBITDA n/m 17.87 9.58
EV/Sales 3.75 7.29 2.32
Earnings yield 6.72% 4.24% 6.72%
Free cash flow yield 6.51% 7.26% 12.33%

Profitability

Metric NNI SEZL Credit Services median
Gross margin 78.28% 82.59% 77.13%
Operating margin 0.00% 40.39% 0.34%
Net margin 14.35% 30.35% 9.25%
Free cash flow margin 13.85% 51.12% 13.03%
Return on equity 8.49% 88.85% 8.49%
Return on assets 2.16% 40.01% 2.29%
Return on invested capital 3.14% 49.69% 4.09%

Growth

Metric NNI SEZL Credit Services median
Revenue growth (TTM) (6.25%) 43.06% 4.62%
EPS growth (last fiscal year) 134.86% 69.99% —
Revenue growth, 5-year CAGR 5.45% 50.26% 9.13%
Net income growth, 5-year CAGR 3.98% 0.00% 0.00%

Health

Metric NNI SEZL Credit Services median
Debt to equity 1.94 0.52 0.68
Current ratio 836.59 4.02 1.55
Net debt to EBITDA 0.00 0.38 0.13

Dividend

Metric NNI SEZL Credit Services median
Dividend yield 1.20% — 3.34%
Payout ratio 0.20 — 0.00

Size

Metric NNI SEZL Credit Services median
Market cap 4.47b 3.75b 872.19m

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