Zip Shares Overvalued as Market Underestimates Downside Risks
Zip’s business is more diversified than single-product buy now, pay later, or BNPL, players, with varieties in financing options, transaction limits, and repayment schedules.
Zip’s business is more diversified than single-product buy now, pay later, or BNPL, players, with varieties in financing options, transaction limits, and repayment schedules.
Zip is well placed to continue growing its transaction volume, given its variety in financing options and retailer base, as well as its Pay Anywhere model which provide greater avenue to spend using its products.
Zip’s longer-dated repayment period, higher transaction values and Pay Anywhere model results in it having a considerably riskier receivables book.
Metric
|
ZIP
|
SQ
|
HUM
|
---|---|---|---|
Price/Earnings (Normalized) | — | 47.40 | 20.35 |
Price/Book Value | 2.72 | 2.44 | 0.39 |
Price/Sales | 1.32 | 2.07 | 0.45 |
Price/Cash Flow | 8.87 | 57.82 | — |
Metric
|
ZIP
|
SQ
|
HUM
|
---|---|---|---|
Quick Ratio | 8.20 | 1.63 | 1.07 |
Current Ratio | 8.64 | 1.90 | 1.08 |
Interest Coverage | 0.82 | — | 0.65 |
Metric
|
ZIP
|
SQ
|
HUM
|
---|---|---|---|
Return on Assets (Normalized) | −2.41% | 3.51% | 0.29% |
Return on Equity (Normalized) | −26.24% | 6.34% | 2.24% |
Return on Invested Capital (Normalized) | 3.56% | 4.64% | 2.44% |
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
---|---|---|---|---|---|
V
| Visa Inc Class A | Dqpzxylq | Jkmgd | $563.0 Bil | |
MA
| Mastercard Inc Class A | Xxlbqyvcz | Wpfh | $431.5 Bil | |
AXP
| American Express Co | Dwwmpzlx | Pdxq | $156.6 Bil | |
PYPL
| PayPal Holdings Inc | Frygdkbhf | Rfjxz | $67.8 Bil | |
COF
| Capital One Financial Corp | Vcvqhgtl | Jbyhpn | $56.6 Bil | |
DFS
| Discover Financial Services | Frdtdfk | Vcsxc | $32.3 Bil | |
SYF
| Synchrony Financial | Mqgkvxnx | Zllc | $17.4 Bil | |
ALLY
| Ally Financial Inc | Mdjgtpqv | Bwvm | $12.1 Bil | |
SOFI
| SoFi Technologies Inc Ordinary Shares | Mvgyldtf | Pzgz | $8.0 Bil | |
WU
| The Western Union Co | Mtcqwfwj | Ptnfqyx | $4.6 Bil |