Critical Review: Sezzle (OTC:SEZNL) vs. OneMain (NYSE:OMF)

OneMain (NYSE:OMF) and Sezzle (OTC:SEZNL) are both financial services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

85.8% of OneMain shares are owned by institutional investors. 0.5% of OneMain shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares OneMain and Sezzle”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneMain	$4.38 billion	1.32	$641.00 million	$5.13	9.42
Sezzle	N/A	N/A	N/A	N/A	N/A

OneMain has higher revenue and earnings than Sezzle.

Analyst Recommendations

This is a summary of current ratings and target prices for OneMain and Sezzle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneMain	0	5	8	0	2.62
Sezzle	0	0	0	0	N/A

OneMain presently has a consensus target price of $55.25, suggesting a potential upside of 14.32%. Given OneMain’s higher probable upside, equities research analysts clearly believe OneMain is more favorable than Sezzle.

Profitability

This table compares OneMain and Sezzle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneMain	12.33%	20.63%	2.68%
Sezzle	N/A	N/A	N/A

Summary

OneMain beats Sezzle on 8 of the 8 factors compared between the two stocks.

About OneMain

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses in the United States. It originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It sells its products through its website. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1912 and is based in Evansville, Indiana.

About Sezzle

Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada. The company provides payment solution at online stores and various brick-and-mortar retail locations that connects consumers with merchants. Its platform enables customers to make online purchases and split the payment for the purchase in four equal interest free payments over six weeks. Sezzle Inc. was incorporated in 2016 and is headquartered in Minneapolis, Minnesota.