Contrasting OneMain (NYSE:OMF) and Sezzle (OTC:SEZNL)

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

Analyst Recommendations

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

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

OneMain has a consensus target price of $55.25, suggesting a potential upside of 18.01%. Given OneMain’s higher possible upside, analysts plainly believe OneMain is more favorable than Sezzle.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sezzle	N/A	N/A	N/A	N/A	N/A
OneMain	$4.38 billion	1.28	$641.00 million	$5.13	9.13

OneMain has higher revenue and earnings than Sezzle.

Profitability

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

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

Institutional & Insider Ownership

85.8% of OneMain shares are held by institutional investors. 0.5% of OneMain shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.

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.