Head to Head Contrast: Sezzle (NASDAQ:SEZL) and Smart Powerr (NASDAQ:CREG)

Smart Powerr (NASDAQ:CREG) and Sezzle (NASDAQ:SEZL) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Smart Powerr and Sezzle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smart Powerr	0	0	0	0	0.00
Sezzle	0	0	2	1	3.33

Sezzle has a consensus price target of $366.00, suggesting a potential upside of 51.22%. Given Sezzle’s stronger consensus rating and higher probable upside, analysts plainly believe Sezzle is more favorable than Smart Powerr.

Institutional and Insider Ownership

0.2% of Smart Powerr shares are owned by institutional investors. Comparatively, 2.0% of Sezzle shares are owned by institutional investors. 14.0% of Smart Powerr shares are owned by company insiders. Comparatively, 57.7% of Sezzle shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smart Powerr	N/A	-1.08%	-0.87%
Sezzle	25.29%	101.18%	18.90%

Volatility & Risk

Smart Powerr has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Sezzle has a beta of 9.72, indicating that its share price is 872% more volatile than the S&P 500.

Earnings and Valuation

This table compares Smart Powerr and Sezzle”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smart Powerr	N/A	N/A	-$750,000.00	($0.14)	-4.92
Sezzle	$221.81 million	6.12	$7.10 million	$9.40	25.75

Sezzle has higher revenue and earnings than Smart Powerr. Smart Powerr is trading at a lower price-to-earnings ratio than Sezzle, indicating that it is currently the more affordable of the two stocks.

Summary

Sezzle beats Smart Powerr on 14 of the 14 factors compared between the two stocks.

About Smart Powerr

Smart Powerr Corp. engages in the waste energy recycling business in China. The company provides energy saving and recovery facilities for various energy intensive industries; waste energy recycling systems for use in nonferrous metal plants; and clean-technology and energy-efficient solutions to reduce air pollution and energy shortage problems. It also designs, finances, constructs, and installs the waste energy recycling project to mid to large-size enterprises involved in high energy-consuming businesses; and provides project investment, investment management, economic information consulting, technical, financial leasing, and financial leasing transactions and consulting services; purchases, repairs, and disposes financial leasing assets; sells and leases energy saving systems and equipment. In addition, the company offers waste gas-to-energy solutions comprising the waste gas power generation system that utilizes flammable waste gas to generate electricity; and flammable waste gases emitted from industrial production processes, such as blast furnace gas, and coke furnace gas, oil or gas to power gas-fired generators, as well as uses the waste heat generated in industrial production to make steam to generate electricity through a steam turbine. Further, it markets its projects to the industrial manufacturers to utilize energy recovery projects in their manufacturing processes, including steel, cement, nonferrous metal, coal, and petrochemical industries. The company was formerly known as China Recycling Energy Corporation and changed its name to Smart Powerr Corp. in March 2022. Smart Powerr Corp. was incorporated in 1980 and is headquartered in Xi'an, China.

About Sezzle

Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada. The company provides payment solution in-store and at online retail stores; and through proprietary payments solution that connects consumers with merchants. It also offers Sezzle Platform that provides a payments solution for consumers that extends credit at the point-of-sale allowing consumers to purchase and receive the ordered merchandise at the time of sale while paying in installments over time; Pay-in-Four, which allows consumers to pay a fourth of the purchase price up front and then another fourth of the purchase price every two weeks thereafter over a total of six weeks; Pay-in-Full that allows consumers to pay for the full value of their order up-front through the Sezzle Platform without the extension of credit; and Pay-in-Two and other alternative installment options, which allow consumer to pay half of the value of their order up-front and the second half in two weeks. In addition, the company provides Sezzle Virtual Card that allows consumers to access the Sezzle Platform in the form of close-end installment loans and shop with merchants that are not integrated with Sezzle; Sezzle Anywhere, a paid subscription service that allows consumers to use their Sezzle Virtual Card at any merchant online or in-store; Sezzle Premium, a paid subscription service that allows its consumers to access large, non-integrated premium merchants; and Sezzle Up, an opt-in feature of the Sezzle Platform. Further, it offers Long-Term Lending through collaboration with third-party lenders and Product Innovation. Sezzle Inc. was incorporated in 2016 and is headquartered in Minneapolis, Minnesota.