Alphabet vs Jumia Technologies Which Is a Better Investment?

Alphabet and Jumia Technologies are two prominent companies in the tech industry with differing focuses. Alphabet, the parent company of Google, is known for its dominant search engine and advertising revenue. On the other hand, Jumia Technologies is an e-commerce platform operating in Africa. Both stocks have attracted investor attention for their potential growth prospects, but they come with their own set of risks and opportunities. This comparison will delve into the key differences and similarities between Alphabet and Jumia Technologies stocks.

Alphabet or Jumia Technologies?

When comparing Alphabet 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 Alphabet 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. Alphabet has a dividend yield of 0.32%, while Jumia Technologies has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%. 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 Alphabet P/E ratio at 24.75 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. Alphabet P/B ratio is 7.43 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, Alphabet has seen a 5-year revenue growth of 1.47%, while Jumia Technologies's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 31.66% 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 $191.26 for Alphabet and $4.31 for Jumia Technologies. Over the past year, Alphabet's prices ranged from $131.55 to $196.89, with a yearly change of 49.67%. 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.