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FI vs. SEZL: Which Fintech Stock Holds Stronger Momentum Right Now?
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Key Takeaways
Fiserv posted 8% revenue growth, with strong Merchant and Financial Solutions performance.
Sezzle's GMV surged 74.2% with higher purchase frequency and a rising subscriber base.
Analysts project 2025 sales growth of 63.1% for SEZL and 9.1% for FI.
Both Fiserv (FI - Free Report) and Sezzle (SEZL - Free Report) are well-known players in the fintech sector. Fiserv is a prominent provider of payments, merchant processing solutions and banking, while Sezzle is an emerging buy-now-pay-later (BNPL) platform serving digital commerce consumers.
This comparative analysis will allow investors to identify the stock as more likely to grow in this expanding global fintech market, which is expected to rally, seeing a CAGR of 16.2% from 2025 to 2032.
The Case for FI
Fiserv came out strong in the second quarter of 2025 with an 8% year-over-year rise in adjusted revenues. Performance across the Merchant Solutions and Financial Solutions segments was robust, with sales growing 10% and 7% year over year, respectively. This sort of diversification provides FI a cushion in this fintech market. The company displayed a strong operating leverage with the adjusted operating margin propelling 120 basis points (bps) from the year-ago quarter. This overall margin expansion was slightly offset by the contraction in the Merchant Solution segment’s margin due to increased investments in international propagation.
With net income increasing 14.8% in the June quarter, Fiserv witnessed a return on equity of 19.7%, skyrocketing 330 bps from the year-ago quarter. Improvement in a metric to this extent is certainly a head-turner for investors. Fiserv reported $1.5 billion in free cash flow at the end of June, which, when combined with a strong current ratio of 1.09, suggests a strong liquidity position and presents a swift investment opportunity.
Fiserv’s long-term growth is vested in Clover’s continued success. In the recently reported quarter, Clover’s revenues climbed 30% year over year, portraying the success of its business operating system for small and medium-sized businesses. A 24% rise in value-added services testifies to a successful upsell strategy. The launch of the FIUSD stablecoin in partnership with PayPal marks the beginning of the company’s dominance in the digital payments market. The introduction of the GENIUS Act will certainly improve the company’s long-term revenue growth prospects.
However, the fintech space is fiercely competitive with new digital payment and BNPL service providers positioning to capture a fair share of the market pie. In doing so, we expect FI to deal with frequent investments, which will affect the company’s growth and profitability balance, hurting the bottom line.
The Case for SEZL
Sezzle has demonstrated exceptional performance in the second quarter of 2025. A record-breaking 74.2% year-over-year surge in the gross merchandise volume (GMV) to $927 million directly contributed to a 76.4% jump in the top line. Sezzle’s ability to turn increased usage into profit is reflected in this metric. Additionally, a 13.7% sequential rise in Monthly On-Demand & Subscribers shows effective user acquisition and retention strategies.
This impressive financial performance was a result of the company’s strong focus on consumer engagement. To ensure customer engagement generated optimistic outcomes, the company latched onto enhancing customer loyalty by leveraging product innovation and targeted marketing.
An increment in purchase frequency to 6.1 during the June quarter from 4.8 in the same quarter last year testifies to SEZL’s successful customer engagement strategy. Furthermore, growth in this metric paints the company not only for one-off transactions but also for the implementation of regular spending habits.
Sezzle targets creating long-term value for its customers, prompting it to boost its marketing spending by 780% year over year in the second quarter of 2025. This company justifies this positive spending by its focus on promoting efficient customer wins with a targeted payback period.
Product features, including Sezzle Balance, are made to improve user engagement and revenue stream diversification. SEZL’s engagement-heavy and user-base-driven fintech strategy amid this highly competitive market compels us to make an optimistic bet on the company’s ability to reap benefits in the long run.
How Do Estimates Compare for FI & SEZL?
The Zacks Consensus Estimate for Fiserv’s 2025 sales stands at $20.9 billion, suggesting a 9.1% year-over-year increase. For 2025, the consensus mark for earnings is kept at $10.21 per share, a 16% increase from the year-ago quarter’s actual. Over the past 60 days, eight estimates for 2025 have shifted downward, with four upward revisions.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Sezzle’s 2025 sales is pegged at $442.1 million, implying 63.1% year-over-year growth. The consensus estimate for earnings is pegged at $3.27 per share, surging 77.7% from the year-ago quarter. One estimate for 2025 has moved north in the past 60 days versus no southward revisions.
Image Source: Zacks Investment Research
SEZL Looks Premium Than FI
Sezzle is currently trading at a forward 12-month Price/Earnings ratio of 23.39X, which is slightly above the 12-month median of 22.33X, suggesting overvaluation. Fiserv looks undervalued with its 12-month price/sales ratio of 12.24X, which is below the 12-month median of 19.41X. All in all, SEZL appears pricier than FI.
Image Source: Zacks Investment Research
Verdict
Fiserv paints a steady growth picture, with improving top line and a strong free cash flow, fueled by Clover’s exponential growth and financial strength. However, frequent investments necessitated by fierce competition pressure margins and downward earnings estimates show a lack of analyst confidence, indicating a limited near-term upside, prompting us to recommend you retain it for now.
Meanwhile, Sezzle delivered a record-breaking GMV growth and impressive top line. The company has displayed prudent user engagement, evidenced by rising purchase frequency and increasing subscriber count. Strong year-over-year top and bottom-line growth expectations of 63.1% and 77.7%, respectively, for 2025 signal accelerating scalability. We recommend investors accumulate SEZL now, driven by strong execution in BNPL.
Image: Bigstock
FI vs. SEZL: Which Fintech Stock Holds Stronger Momentum Right Now?
Key Takeaways
Both Fiserv (FI - Free Report) and Sezzle (SEZL - Free Report) are well-known players in the fintech sector. Fiserv is a prominent provider of payments, merchant processing solutions and banking, while Sezzle is an emerging buy-now-pay-later (BNPL) platform serving digital commerce consumers.
This comparative analysis will allow investors to identify the stock as more likely to grow in this expanding global fintech market, which is expected to rally, seeing a CAGR of 16.2% from 2025 to 2032.
The Case for FI
Fiserv came out strong in the second quarter of 2025 with an 8% year-over-year rise in adjusted revenues. Performance across the Merchant Solutions and Financial Solutions segments was robust, with sales growing 10% and 7% year over year, respectively. This sort of diversification provides FI a cushion in this fintech market. The company displayed a strong operating leverage with the adjusted operating margin propelling 120 basis points (bps) from the year-ago quarter. This overall margin expansion was slightly offset by the contraction in the Merchant Solution segment’s margin due to increased investments in international propagation.
With net income increasing 14.8% in the June quarter, Fiserv witnessed a return on equity of 19.7%, skyrocketing 330 bps from the year-ago quarter. Improvement in a metric to this extent is certainly a head-turner for investors. Fiserv reported $1.5 billion in free cash flow at the end of June, which, when combined with a strong current ratio of 1.09, suggests a strong liquidity position and presents a swift investment opportunity.
Fiserv’s long-term growth is vested in Clover’s continued success. In the recently reported quarter, Clover’s revenues climbed 30% year over year, portraying the success of its business operating system for small and medium-sized businesses. A 24% rise in value-added services testifies to a successful upsell strategy. The launch of the FIUSD stablecoin in partnership with PayPal marks the beginning of the company’s dominance in the digital payments market. The introduction of the GENIUS Act will certainly improve the company’s long-term revenue growth prospects.
However, the fintech space is fiercely competitive with new digital payment and BNPL service providers positioning to capture a fair share of the market pie. In doing so, we expect FI to deal with frequent investments, which will affect the company’s growth and profitability balance, hurting the bottom line.
The Case for SEZL
Sezzle has demonstrated exceptional performance in the second quarter of 2025. A record-breaking 74.2% year-over-year surge in the gross merchandise volume (GMV) to $927 million directly contributed to a 76.4% jump in the top line. Sezzle’s ability to turn increased usage into profit is reflected in this metric. Additionally, a 13.7% sequential rise in Monthly On-Demand & Subscribers shows effective user acquisition and retention strategies.
This impressive financial performance was a result of the company’s strong focus on consumer engagement. To ensure customer engagement generated optimistic outcomes, the company latched onto enhancing customer loyalty by leveraging product innovation and targeted marketing.
An increment in purchase frequency to 6.1 during the June quarter from 4.8 in the same quarter last year testifies to SEZL’s successful customer engagement strategy. Furthermore, growth in this metric paints the company not only for one-off transactions but also for the implementation of regular spending habits.
Sezzle targets creating long-term value for its customers, prompting it to boost its marketing spending by 780% year over year in the second quarter of 2025. This company justifies this positive spending by its focus on promoting efficient customer wins with a targeted payback period.
Product features, including Sezzle Balance, are made to improve user engagement and revenue stream diversification. SEZL’s engagement-heavy and user-base-driven fintech strategy amid this highly competitive market compels us to make an optimistic bet on the company’s ability to reap benefits in the long run.
How Do Estimates Compare for FI & SEZL?
The Zacks Consensus Estimate for Fiserv’s 2025 sales stands at $20.9 billion, suggesting a 9.1% year-over-year increase. For 2025, the consensus mark for earnings is kept at $10.21 per share, a 16% increase from the year-ago quarter’s actual. Over the past 60 days, eight estimates for 2025 have shifted downward, with four upward revisions.
The Zacks Consensus Estimate for Sezzle’s 2025 sales is pegged at $442.1 million, implying 63.1% year-over-year growth. The consensus estimate for earnings is pegged at $3.27 per share, surging 77.7% from the year-ago quarter. One estimate for 2025 has moved north in the past 60 days versus no southward revisions.
SEZL Looks Premium Than FI
Sezzle is currently trading at a forward 12-month Price/Earnings ratio of 23.39X, which is slightly above the 12-month median of 22.33X, suggesting overvaluation. Fiserv looks undervalued with its 12-month price/sales ratio of 12.24X, which is below the 12-month median of 19.41X. All in all, SEZL appears pricier than FI.
Verdict
Fiserv paints a steady growth picture, with improving top line and a strong free cash flow, fueled by Clover’s exponential growth and financial strength. However, frequent investments necessitated by fierce competition pressure margins and downward earnings estimates show a lack of analyst confidence, indicating a limited near-term upside, prompting us to recommend you retain it for now.
Meanwhile, Sezzle delivered a record-breaking GMV growth and impressive top line. The company has displayed prudent user engagement, evidenced by rising purchase frequency and increasing subscriber count. Strong year-over-year top and bottom-line growth expectations of 63.1% and 77.7%, respectively, for 2025 signal accelerating scalability. We recommend investors accumulate SEZL now, driven by strong execution in BNPL.
SEZL sports a Zacks Rank #1 (Strong Buy) and FI carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.