Coupang vs Jumia Technologies Which Is a Smarter Choice?

Coupang and Jumia Technologies are two leading e-commerce companies in their respective regions. Coupang is a South Korean-based company that has seen rapid growth and success in the e-commerce industry. On the other hand, Jumia Technologies operates in several African countries and has also shown impressive growth with its online marketplace. Both companies have experienced fluctuations in their stock prices, with investors closely monitoring their performance in the competitive e-commerce market.

Coupang or Jumia Technologies?

When comparing Coupang 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 Coupang 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. Coupang has a dividend yield of -%, while Jumia Technologies has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Coupang reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Coupang P/E ratio at 41.31 and Jumia Technologies's P/E ratio at -5.82. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coupang P/B ratio is 10.16 while Jumia Technologies's P/B ratio is 5.50.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Coupang has seen a 5-year revenue growth of 4.40%, while Jumia Technologies's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coupang's ROE at 25.43% 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 $23.40 for Coupang and $4.54 for Jumia Technologies. Over the past year, Coupang's prices ranged from $13.51 to $26.91, with a yearly change of 99.19%. 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.