Alibaba vs Jumia Technologies Which Is More Reliable?

Both Alibaba and Jumia Technologies are prominent players in the e-commerce industry, but their stocks have shown significant differences in performance. Alibaba, a Chinese e-commerce giant, has experienced consistent growth and dominance in the Asian market. On the other hand, Jumia Technologies, an African e-commerce platform, has faced challenges and volatility in a developing market. Investors are closely watching the contrasting trajectories of these two companies' stocks to understand the potential opportunities and risks in the e-commerce sector.

Alibaba or Jumia Technologies?

When comparing Alibaba and Jumia Technologies, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Alibaba and Jumia Technologies.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Alibaba has a dividend yield of 3.01%, while Jumia Technologies has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alibaba reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.40%. On the other hand, Jumia Technologies reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Alibaba P/E ratio at 18.25 and Jumia Technologies's P/E ratio at -5.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alibaba P/B ratio is 1.65 while Jumia Technologies's P/B ratio is 5.18.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alibaba has seen a 5-year revenue growth of 2.38%, while Jumia Technologies's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alibaba's ROE at 8.88% and Jumia Technologies's ROE at -161.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $87.24 for Alibaba and $4.31 for Jumia Technologies. Over the past year, Alibaba's prices ranged from $66.63 to $117.82, with a yearly change of 76.83%. Jumia Technologies's prices fluctuated between $2.88 and $15.04, with a yearly change of 422.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.