eBay vs Jumia Technologies Which Performs Better?

eBay and Jumia Technologies are both popular e-commerce companies that have gained significant traction in the retail industry. eBay, founded in 1995, has established itself as a global online marketplace where individuals and businesses can buy and sell a wide range of products. On the other hand, Jumia Technologies, founded in 2012, focuses on providing an online shopping platform for customers in African countries. Both companies have seen fluctuations in their stock prices over the years, making them intriguing options for investors seeking exposure to the e-commerce sector.

eBay or Jumia Technologies?

When comparing eBay 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 eBay 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. eBay has a dividend yield of 1.69%, while Jumia Technologies has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. eBay reports a 5-year dividend growth of 0.00% year and a payout ratio of 26.44%. 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 eBay P/E ratio at 15.39 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. eBay P/B ratio is 5.74 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, eBay has seen a 5-year revenue growth of 0.74%, while Jumia Technologies's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with eBay's ROE at 34.22% 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 $63.50 for eBay and $4.31 for Jumia Technologies. Over the past year, eBay's prices ranged from $40.16 to $67.80, with a yearly change of 68.82%. 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.