Sezzle Inc. (SEZL) vs SLM Corporation (SLM)

Sezzle Inc. and SLM Corporation are both Credit Services companies. SLM Corporation is the larger, with a market value of $4.3B against $3.8B — 1.2× the size. SLM Corporation trades at the lower P/E: 6.5× against 23.6×. Sezzle Inc. grew revenue faster over the last twelve months: 43.1% against 5.37%. Sezzle Inc. has the higher net margin (30.4% vs 23.5%) and the higher return on invested capital (49.7% vs 17.8%). Across the 20 metrics below, Sezzle Inc. leads on 14 and SLM Corporation on 6.

Valuation

Metric SEZL SLM Credit Services median
P/E 23.60 6.52 9.64
P/S 7.04 1.45 0.87
P/B 16.08 2.01 1.16
Price to free cash flow 13.78 n/m 2.99
EV/EBITDA 17.87 n/m 9.58
EV/Sales 7.29 1.78 2.32
Earnings yield 4.24% 15.34% 6.72%
Free cash flow yield 7.26% (7.28%) 12.33%

Profitability

Metric SEZL SLM Credit Services median
Gross margin 82.59% 63.91% 77.13%
Operating margin 40.39% 0.00% 0.34%
Net margin 30.35% 23.48% 9.25%
Free cash flow margin 51.12% (10.58%) 13.03%
Return on equity 88.85% 33.15% 8.49%
Return on assets 40.01% 2.48% 2.29%
Return on invested capital 49.69% 17.76% 4.09%

Growth

Metric SEZL SLM Credit Services median
Revenue growth (TTM) 43.06% 5.37% 4.62%
EPS growth (last fiscal year) 69.99% 29.10% —
Revenue growth, 5-year CAGR 50.26% 5.73% 9.13%
Net income growth, 5-year CAGR 0.00% (3.49%) 0.00%

Health

Metric SEZL SLM Credit Services median
Debt to equity 0.52 2.36 0.68
Current ratio 4.02 1.33 1.55
Net debt to EBITDA 0.38 0.00 0.13

Dividend

Metric SEZL SLM Credit Services median
Dividend yield — 2.30% 3.34%
Payout ratio — 0.28 0.00

Size

Metric SEZL SLM Credit Services median
Market cap 3.75b 4.33b 872.19m

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