Jumia Technologies (NYSE:JMIA) & home24 (OTC:HMAGF) Critical Survey

home24 (OTC:HMAGF) and Jumia Technologies (NYSE:JMIA) are both consumer cyclical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for home24 and Jumia Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
home24	0	0	0	0	N/A
Jumia Technologies	0	1	1	0	2.50

Jumia Technologies has a consensus price target of $7.30, suggesting a potential upside of 43.00%. Given Jumia Technologies’ higher probable upside, analysts clearly believe Jumia Technologies is more favorable than home24.

Earnings and Valuation

This table compares home24 and Jumia Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
home24	N/A	N/A	N/A	N/A	N/A
Jumia Technologies	$186.40 million	2.77	-$104.15 million	N/A	N/A

home24 has higher earnings, but lower revenue than Jumia Technologies.

Profitability

This table compares home24 and Jumia Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
home24	N/A	N/A	N/A
Jumia Technologies	-54.40%	-182.98%	-57.22%

Institutional & Insider Ownership

16.5% of Jumia Technologies shares are held by institutional investors. 1.9% of Jumia Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Jumia Technologies beats home24 on 5 of the 8 factors compared between the two stocks.

About home24

home24 SE, together with its subsidiaries, engages in marketing, sale, and shipping of furniture and home furnishings. The company offers living, dining, bedroom, upholstered, and garden furniture; textiles; and lamps and accessories. It sells its products under the Studio Copenhagen, ARS NATURA, MORTEENS, ars MANUFACTI, fredriks, home24, Butlers, and Mobly brand names. The company operates showrooms, retail stores, outlets, and through ecommerce website. It has operations in Germany, Austria, Netherlands, Switzerland, Belgium, Brazil, and Italy. The company was incorporated in 2009 and is headquartered in Berlin, Germany.

About Jumia Technologies

Jumia Technologies AG operates an e-commerce platform in West Africa, North Africa, East and South Africa, Europe, the United Arab Emirates, and internationally. The company’s platform consists of marketplace that connects sellers with customers; logistics service, which enables the shipment and delivery of packages from sellers to consumers; and payment service, which facilitates transactions to participants active on the company’s platform in selected markets under the JumiaPay name. Its marketplace offers various products in a range of categories, including phones, electronics, home and living, fashion, beauty, and fast-moving consumer goods; and various digital lifestyle services, such as utility bills payment, airtime recharge, gaming and entertainment, and transport ticketing, as well as financial services comprising micro-loans, insurance, and savings products. The company was formerly known as Africa Internet Holding GmbH and changed its name to Jumia Technologies AG in January 2019. Jumia Technologies AG was incorporated in 2012 and is headquartered in Berlin, Germany.