ASX: Afterpay Limited (ASX: APT) vs Zip Co Limited (ASX: Z1P)

Buy Now Pay Later (BNPL) companies:

Afterpay

• Founded: 2015

• Operates in: US, UK, Australia and New Zealand

• Merged with Touchcorp in 2017

Zip Co

• Founded: 2013

• Australia and New Zealand

• Listed: 2015 (ASX: ZML) and to date has raised more than $65M in funding

• Strategic investors: In 2017, Zip secured a $260M debt facility with $200M in funding from NAB, and a $40M equity investment from WBC

• https://au.finance.yahoo.com/news/zip-acquired-us-company-quadpay-051641732.html?guccounter=1&guce_referrer=aHR0cHM6Ly9hdS5maW5hbmNlLnlhaG9vLmNvbS8&guce_referrer_sig=AQAAADxN5rIzsnCU4bITgJdFW2ygp6AGqxQtg9nxCiD4uksclXfV4h1AjfwTfPj5pjieO7yqzpWt9ryJSRRWvvCwr1WuUf7SNrkR8JkF6o_-1d19bUiPwSx9vSaJUa1fpPioXGeZfGDn1eSskakueP3OOYE5EegaM4CkhJat4uZFaLRT

• PE ratio: both companies are currently in losses

• 52-week range: both companies are currently at their high range, compared to other bluechip companies which are at low 52-week range due to COVID-19

• A lot of "cheap" (free) money came into market from government to level the prices due to COVID19 = their valuations do not justify the fundamental

• Avg. volume: Substantial amount of speculative activities = momentum stock

19/09/2020