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Paulinski

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01/02/24

06:38

Post #: 72174597
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Originally posted by Prestonian: ↑

Do some ratio analysis, use the Form 10Qs for the figures and you can then fairly compare the two companies. They have slightly different business models but both ultimately fintech growth stocks in "bnpl".

Affirm has a much larger customer base with a very large cash buffer and generates a bit more revenue per customer annually because it deals in big ticket items vs sezzle and smaller daily items. Does a greater customer base mean they are already ahead of Sezzle, or is there more potential for Sezzle to grow at a higher rate than Affirm?

Affirm has greater debt. Try calculating the debt to asset ratio or debt to annual company revenue ratio and you'll see. The impact of large debt flows down through the P&L as funding costs....

Affirm's bad debts and funding costs eat up a greater % of company revenue, like over 40%. To me that's too high. Sezzle has been able to manage these costs much better. Surely Sezzle will be refinancing at some point for a better deal too.

The best comparison from a valuation p.o.v. is probably taking the market cap and dividing by the company revenue. Similarly take the market cap and divide by the number of users. Either of these ratios show that Sezzle has potentially a lot more value to be unlocked

https://finance.yahoo.com/quote/SEZL/key-statistics?p=SEZL https://finance.yahoo.com/quote/AFRM/key-statistics?p=AFRM

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I absolutely agree with you! You have a better way of explaining it. You use professional lingo! Great ! Thank you !

SZL Price at posting: $24.35 Sentiment: Buy Disclosure: Held
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